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Thursday, Apr 25, 2024

$130M Loan Given for Self-Storage Portfolio

A portfolio of self-storage properties owned by Redondo Beach-based Trojan Storage has received a $130 million loan.
San Francisco-based mortgage banking firm Gantry Inc.’s Andy Bratt and Amit Tyagi secured the financing on the company’s behalf from a life insurance company lender.

The loan is for six properties that contain 600,000 rentable square feet. The properties are located in California, Oregon and Washington.
Locally, that includes newly built properties in Commerce and Glendale. Another recently built property included in the financing is located in San Jose. They are not yet stabilized.
The other three properties, located in Salinas, Portland, Ore. and Vancouver, were recently acquired by the company. These properties all have value-add potential.

“Increasing sponsorship sophistication and strong performance over the past decade has cemented self storage’s status as a preferred asset class alongside multifamily and industrial for many of Gantry’s lenders,” Tyagi said in a statement. “In this instance, as in several others, this investment in education and subsequent comfortability has allowed Gantry to secure attractive long-term financing on behalf of clients for not only stabilized assets, but also pre-stabilized assets in what remains a generationally low interest rate climate.”

“This has been a win for our sponsors and lenders. As we have adapted our financing strategies with the storage industry’s growth over the past decade, we’re excited to remain at the forefront of advancing the capabilities of self-storage finance as the industry continues to grow in the coming decades,” he added.
The financing is at a fixed term for 10 years. It has a “significant interest-only period later transitioning to a 30-year amortization schedule,” according to Gantry.

“Self storage as an asset class has come of age across our spectrum of traditional, fixed-rate lenders as they become more and more comfortable underwriting the unique operative model and fundamentals of this asset class,” Bratt said in a statement. “Gantry has been instrumental in exposing the capital markets, particularly insurance company lenders, to the asset class over the last decade. Gantry executed the first storage loans for many institutions over the years. These were early days in what has now become a substantial business for Gantry. We have continued to grow our self storage financing capabilities and have created a powerful niche in the space.”

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