Seven Hills Realty Trust Provides $25M Refi for Storage Assets

Both Life Storage facilities came online in 2020. Image courtesy of Seven Hills Realty Trust

Seven Hills Realty Trust, a mortgage REIT managed by Tremont Realty Capital, provided $25.3 million for the refinancing of two storage facilities in Atlanta and Fayetteville, Ga. Talonvest Capital, which introduced Tremont Realty to the transaction, advised the joint venture sponsorship of Castle Hill Investors and Olympus Ventures LLC.

The floating rate bridge loan has a three-year initial term with two one-year extension options, subject to the borrower meeting certain requirements. Built in 2020, the properties comprise more than 170,000 square feet. They have been developed by Diamond Point Development and operate under the Life Storage brand.

According to Yardi Matrix data, the Atlanta facility was previously subject to a $6.3 million construction loan in 2019 from First Carolina Bank, with a maturity date set for 2024. The asset in Fayetteville received a $5.4 million construction loan in 2019 from Renasant Bank and an $8 million loan in 2022, originated by Georgia Banking Co., and due in 2025.

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The Atlanta Life Storage is a 73,020-square-foot property encompassing a three-story building. The facility features climate-controlled units ranging from 25 to 200 square feet. Located at 3900 Cascade Road, the property is 10 miles from downtown Atlanta and is one of the two available within a 3-mile radius, offering residents 4.2 rentable square feet of storage space per capita.

The asset in Fayetteville is a 104,850-square-foot facility. The three-story building offers climate-controlled units ranging from 25 to 300 square feet. The property is at 815 W. Lanier Ave., 25 miles from downtown Atlanta and is one of the 5 available within a 3-mile radius, offering residents 11.5 rentable square feet of storage space per capita.

Both properties provide video surveillance, contactless renting, on-site management, gated access on Sundays and wide-drive aisles to accommodate large moving trucks.

Refinancing self storage assets

In the last few months, several self storage properties have been refinanced. Back in July, Gantry secured $18 million for two assets in Southern California, operating under the Ace Self Storage brand.

More recently, Gramor Development Washington received an $8.8 million permanent loan for Cubes Self Storage, a 65,902-rentable-square-foot facility in Covington, Wash. Transamerica Life Insurance Co. provided the loan for the facility, which came online in 2020. Greystone also originated a $14 million CMBS loan for SOS Storage Centers, a 143,483-square-foot self storage asset in Torrance, Calif.