SpareBox Lands $463M Refi for Self Storage Portfolio
Bank of America provided the loan for 100-plus facilities.
SpareBox has received a refinancing of $462.5 million for 108 properties, located in nine states across the U.S. Bank of America provided the loan.
The Newmark team which arranged the refinancing included Vice-Chairmen Dustin Dolly and Jordan Roeschlaub, Senior Managing Director Nick Scribani, in partnership with Vice Chairman Aaron Swerdlin and Senior Managing Director Taucha Hogue.
Launched in 2020, SpareBox is a joint venture between investment funds advised by Davidson Kempner Capital Management and Rizk Ventures. The company owns facilities in 21 markets across the following nine states: Texas, Michigan, Ohio, Arkansas, Oklahoma, New Hampshire, South Carolina, Florida and Georgia. The company plans to expand into new markets, particularly the Southwest and Southwest, Steve Treadwell, CEO of SpareBox Storage, said in prepared remarks.
In over two years, the company acquired 7.4 million square-feet of storage facilities. At the beginning of the year, SpareBox reached its 100-store milestone with the acquisition of two properties, a 96,000-square-foot facility in Georgetown, Texas, and a 36,000-square-foot asset in Weare, N.H.
Strategy for a steady and low-risk sector
In a spring interview with Multi-Housing News, Treadwell elaborated on the company’s expansion strategy and operation policy. The plan is to pursue markets with strong in-migration, attractive tax policy and solid demand, which would lead to the development of operating clusters, facilitating a shift from individual-owned facilities to a larger scale institutional management platform. SpareBox also uses an online platform for all their customer operations, striving for a contactless operation.
The self storage sector remains strong in the face of recession and other socio-economic woes. In-migration, residential downsizing and facility repurposing are all factors that contribute to the stability and long-term growth of the storage market.