$130 million loan granted for a self-storage portfolio
A portfolio of self-storage properties owned by Redondo Beach-based Trojan Storage received a $130 million loan.
Andy Bratt and Amit Tyagi of San Francisco-based mortgage banking firm Gantry Inc. secured the financing on behalf of the company from a life insurance company lender.
The loan is for six properties that contain 600,000 leasable square feet. The properties are located in California, Oregon and Washington.
Locally, this 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, Oregon and Vancouver, were recently acquired by the company. These properties all have added value potential.
“Sponsorship’s growing sophistication and strong performance over the past decade has cemented self-storage’s status as the preferred asset class alongside multifamily and industrial for many Gantry lenders,” Tyagi said in a statement. “In this case, as in several others, this investment in education and the comfort that comes with it has enabled Gantry to secure attractive long-term financing on behalf of clients not only for stabilized assets, but also for pre-stabilized assets in what remains a generationally low interest rate climate.
“It was a victory for our sponsors and our lenders. As we have adapted our financing strategies to the growth of the storage industry over the past decade, we are excited to remain at the forefront of improving self-storage financing capabilities as the industry continues to grow in the coming decades,” he added.
The financing is for a fixed term of 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 matured into our spectrum of traditional fixed rate lenders as they become more comfortable underwriting the unique operating model and fundamentals of this class. of assets,” Bratt said in a statement. “Gantry has been instrumental in exposing capital markets, particularly insurance company lenders, to the asset class over the past decade. Gantry has executed the first storage loans for many institutions over the years. These were the early days of what has now become a major business for Gantry. We continued to build our self-storage finance capabilities and created a strong niche in the space.