Hines, Trez Capital Land $108M for Self Storage Portfolio

One of the Dallas-area properties. Image courtesy of JLL

Hines and Trez Capital have secured $108 million in financing for a 13-property self-storage portfolio located across the Dallas-Fort Worth Metroplex. JLL Capital Markets arranged the financing through New York Life Real Estate Investors. The firm was able to provide an early-rate lock with interest-only payments and prepayment flexibility early in the loan term on the five-year, fixed-rate loan.

JLL began marketing the financing opportunity to lenders early in the third quarter of last year and advised the borrower.

Given the challenging macroeconomic environment, JLL presented alternative ways to move forward, such as interest rate derivative and hedging strategies facilitated by Kensington Capital Advisors, a firm acquired by JLL in April 2023. Other options included floating-rate debt executions and bespoke fixed-rate structures. Ultimately, New York Life provided an early-rate lock feature. Hines capitalized on this feature to lock in an attractive interest rate coupon early this year.

The JLL Capital Markets Debt Advisory team representing Hines included director John Bauman and Analyst Jordan Buck.

Key watershed

A prepared corporate statement from Hines quoted a senior official as stating the transaction represents a crucial milestone for the company’s self-storage platform. That platform aims to provide Class A, accessible storage solutions in high-barrier markets, the official further stated.  The current transaction draws on and expands Hines’ time-honored relationship with New York Life Real Estate Investors.

A Trez Capital official noted partner selection is job one at the firm, and by availing itself of Hines’ industry expertise, and the appealing long-term financing from New York Life Real Estate Investors, it has been able to provide investors with excellent value. Last month, a JLL REIT acquired Creekview Crossing, a multifamily property in suburban Portland, Ore.