Metro LA Self Storage Asset Lands $37M Loan
Talonvest Capital arranged the bridge financing on behalf of the property’s owner.
1784 Capital Holdings has secured a $36.8 million bridge loan for a self storage facility in Hawthorne, Calif., through a unique lending program. Talonvest Capital represented the firm in the financing deal.
According to Los Angeles County public records, Extra Space Capital LLC provided the financing.
The non-recourse bridge loan has a 3-year term with two extension options, as well as full-term interest-only payments.
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Delivered in 2022, the facility encompasses 999 units across 92,067 square feet of rentable space. Rising three stories above ground, with one level below ground, the property features climate control, drive-up access, as well as security cameras.
Located at 3155 W. El Segundo Blvd. inside Hawthorne’s industrial district, the property is less than 1 mile from Interstate 105 and some 13 miles southwest of downtown Los Angeles.
A 3-mile radius scan around the facility reveals 20 additional self storage properties, providing a combined 3.8 net rentable square feet of storage space per capita for the area’s residents, Yardi Matrix data shows.
Talonvest Co-Founder Tom Sherlock and Principal Jim Davies, alongside Director Britt Taylor, Manager Lauren Maehler and Associate Mason Brusseau, represented 1784 Holdings in the financing negotiations.
Self storage sequential monthly street rates turn positive
Although the average Los Angeles street rate per square foot increased by 1 percent in April compared to March, the metro’s year-over-year rate decreased by 5 percent during the same month, according to a recent Yardi Matrix report.
The decline in street rates is omnipresent across the markets tracked by Yardi Matrix, with a national year-over-year drop of 4.4 percent as of April.
