Gantry Arranges $120M Financing for 9 Self Storage Assets
Working on behalf of three borrowers, the company secured the loans for assets located in California, Oregon, Washington and Arizona.
Nine self storage facilities across four states have received a total of $120 million in life insurance financing for construction, repositioning and stabilization. The properties are in California, Oregon, Washington and Arizona.
Working on behalf of Trojan Storage, Nova Storage and StorAmerica, a Guardian Storage Centers brand, Gantry has arranged the mortgages in four separate transactions.
The Gantry team that helped structure the loans included Principal Andy Bratt and Senior Director Amit Tyagi, with the Newport Beach and Los Angeles offices, and Production Associate Spencer Seibring.
Six Trojan Storage facilities across California, Oregon and Washington received a combined $59.06 million. The loan package for the 4,332-unit portfolio includes permanent financing for recently developed and newly acquired properties, with a long-term fixed rate of less than 3 percent and interest-only initial payments across each individual loan.
Nova Storage secured a $24 million permanent loan for a three-story, 950-unit facility in Greater Los Angeles. The property is stabilized and is currently undergoing a strategic expansion, with construction set for completion in the second quarter of 2022. The loan includes a long-term fixed rate for both the existing asset and the expansion.
A StorAmerica facility in Scottsdale, Ariz., received $23 million in permanent financing. The mortgage on the 923-unit property comes with a rate below 3 percent, interest-only initial payments, a 30-year amortization period and a seven-year term.
Another StorAmerica-branded facility, located in Surprise, Ariz., received a $15 million permanent loan. The 478-unit facility at 14136 N. Litchfield Road was completed in 2019 and is currently undergoing a 228-unit expansion. The seven-year term loan includes partial funding for the expansion, with a rate below 3 percent, an interest-only introductory period transitioning to 30-year amortization and a seven-year term.
Banner year for self storage
Self storage’s proven resilience and growing demand over the past two years continue to feed investors’ growing appetite, with new players entering the market. Recently, KKR purchased a $36 million portfolio, marking the company’s first self storage acquisition.
In June, the sector recorded one of its best months to date, according to a recent Yardi Matrix report. National street rates for 10×10 non-climate-controlled units rose 10.6 percent year-over-year, while rates for 10×10 climate-controlled units saw a 12.7 percent uptick over the same period. Miami’s growth topped all markets across the U.S. Rents in the metro increased by a whopping 21.7 percent for non-CC units year-over-year.
Even slower-growth markets such as Portland and Pittsburg saw significant rent gains on a year-over-year basis, with rates for non-CC units increasing by 7 percent and 4 percent, respectively.