DEAL HISTORY
$9.0M
Refinance
CMBS
The BSC Group closed a $9.0M fixed rate permanent loan for a sponsor based in the Southwest. The loan proceeds were used to refinance an existing, single-story self-storage facility in a suburban Tier 1 market. The new loan retired the owners existing bank debt and provided over $4.0M in "cash out" to the borrower, with a fixed interest rate of 2.85% for 10 years, as well as "interest only" amortization for the full term of the loan. This non-recourse loan was closed in a small balance loan program that provided streamlined processing and low closing costs to the borrower.
$9.5M
Acquisition
CMBS
The BSC Group closed a $9.5M fixed rate permanent loan for a Colorado based institutional sponsor. The loan proceeds were used to acquire a four-property, Michigan self-storage portfolio consisting of 175,000 square feet, illustrating the lending markets willingness to aggressively finance smaller properties. The loan was closed during the recent spike in treasury yields, however The BSC Group was able to negotiate a reduced spread to offset the increase in treasuries and maintain a market leading interest rate. The non-recourse loan features 60 months of interest only payments.
$6.3M
Refinance
Bank Loan
The BSC Group closed a $6.3M fixed rate permanent loan for an Arizona based sponsor. The loan proceeds were used to refinance a newly developed, multi-story self-storage facility in suburban Phoenix. The new loan retired the developer’s construction debt and provided a fixed interest rate under 3% for 10 years, with interest only amortization for the entire term of the loan. The non-recourse loan was closed in a small balance loan program that provided streamlined processing and low closing costs to the borrower.
$17.5M
Acquisition
Insurance Company
The BSC Group recently closed a $17.5MM non-recourse bridge loan for a Colorado based sponsor. The 65% LTC, sub 6% debt yield financing was used to purchase an existing self storage facility in the NYC MSA and provided significant funds for capital improvements to transform the property into an class A facility. The lender, a national insurance company, offered a 5 year fixed rate loan, with flexible prepayment and an interest rate of approximately 3.75%.
$32.6M
Refinance
CMBS
The BSC Group recently closed a $32.6M fixed rate permanent loan for an Illinois based institutional sponsor. The loan proceeds were used to refinance a 5 property, multi-state self-storage portfolio consisting of more than 407,000rentable square feet and 3,200 units in 3 separate states. The new loan was underwritten at 60% LTV and a 10 year fixed rate term, with an interest rate of 2.89%. The non-recourse loan features 60 months of interest only payments followed by a 30 year amortization schedule.
$5.1M
Acquisition
CMBS
The BSC Group recently closed a $5.1M fixed rate permanent loan for a Colorado based institutional sponsor. The loan proceeds were used to acquire a 2 property, multi-state self-storage portfolio consisting of more than 87,000 rentable square feet and more than 700 units in two states. The new loan was underwritten at 59.5% LTV and a 10-year fixed rate term, with an interest rate in the mid-3% range. The non-recourse loan features 60 months of interest only payments followed by a 30-year amortization schedule.
$5.22M
Refinance
Bank
The BSC Group recently closed a $5.225M nonrecourse loan used to refinance a self-storage property in Galveston, TX, for a Texas based sponsor. The new loan was placed with a regional bank and features a 7-year fixed rate term on a 30-year amortization schedule, with 24 months of interest only payments. Due to the extremely low-rate environment, this borrower elected to refinance their current outstanding debt early, thereby lowering their cost of funds by almost 200 basis points, while resetting the fixed rate for the next seven years in the low 3’s.
$19.9M
Refinance
CMBS
The BSC Group is pleased to announce the closing of a $19.9MM CMBS loan on a 5-property self-storage portfolio located in the Northwest. The 70% LTV loan was structured with a 10-year term, a 30-year amortization and a rate in the low 4% range. The sponsor was able to refinance his existing debt and extract over 5MM in equity at close bringing the new loan amount significantly above their existing basis. The cash out was the motivating factor to refinance.
$4.6M
Refinance
Debt Fund
The BSC Group recently arranged a $4.6MM bridge loan for an east coast sponsor. The financing package was used to refinance a self-storage property that had not hit stabilization prior to the maturity of an acquisition loan that was placed on the property 24 months earlier. The new 5-year interest only loan featured a competitive spread of 375 basis points over Libor and is open to prepayment free of penalty after month 36. At 90% of cost, proceeds from the loan were used to not only pay off the acquisition loan, but also return significant equity to the investors.
$4.22M
Acquisition
Bank
The BSC Group recently closed a $4.22M non-recourse loan for a large sponsor used to acquire a self-storage property in Houston, TX. This fixed rate, non-recourse loan was placed with a national bank and featured a 5-year term with a 30-year amortization, along with 24 months of interest only payments. The 61% LTV loan was rate locked at application at a rate of 3.33%. The BSC Group continues to close loans through the pandemic and is extremely active in the self-storage sector, having arranged more than $160MM in financing for the product type YTD 2020.
$4.4M
Refinance
CMBS
The BSC Group announced the closing of a $4.4MM CMBS loan used to refinance a self-storage property located in New Jersey. The 10-year fixed rate loan included 2 years of interest-only payments, followed by a 30-year amortization, and an interest rate in the mid 3% range. This 65% LTV non-recourse loan isolated the borrower’s liability and provided close to $2M in "cash out" at closing, which will be used to purchase a neighboring vacant lot and expand the facility. This transaction was closed with a national lender in their small balance loan program, which streamlined the closing process and offered the borrower a reduced, fixed cost for legal and third-party reports.
$66.62M
Acquisition
CMBS
The BSC Group recently closed a $66.625M non-recourse loan that was used to acquire a twelve property self-storage portfolio in Michigan for an institutional, Illinois based sponsor. The portfolio is comprised of 747,146 net rentable square feet with 6,209 units, spread across multiple locations in Ann Arbor, Chesterfield, Grand Rapids, Kalamazoo, Lake Orion, Lansing, Novi, Okemos, Westland, Wyoming, and Ypsilanti. The deal was competitively bid by multiple interested lenders and offered a 10-year fixed-rate in the mid 3’s, as well as multiple years of interest only amortization, which will significantly enhance the net cash flow and expected yield during the ownership tenure.
$5.8M
Refinance
CMBS
The BSC Group announced the closing of a $5.8MM CMBS loan used to refinance a 2 property self-storage portfolio located in Commerce Ga. The 10-year fixed rate loan included 3 years of interest-only payments and an interest rate in the high 3% range. What differentiated this loan was the significant cash out to the borrower at closing, and notably an abbreviated look-back period used in the cash flow underwriting to determine the lender’s underwritten NOI. Additionally, this transaction was unique in that one of the assets was acquired in 2017 the other in 2019, yet the lender was able to provide loan proceeds exceeding 100% of cost.
$2.25M
Refinance
CMBS
The BSC Group also closed a $2.25MM CMBS loan that was used to refinance a purpose-built Boat and RV Storage Facility in suburban Phoenix, AZ. The ~500 spot parking facility features both covered and uncovered Boat and RV parking and was recently expanded. The new non-recourse loan was structured with a 10-year fixed rate term and a 30-year amortization, removing the borrower from the recourse obligation associated with his existing SBA debt. Through this refinance the borrower was able to consolidate the debt on all his assets to a single property, leaving the others unencumbered. Importantly, this refinancing will also free up borrowing capacity with the SBA so that they can use that source of capital on future developments that the investor is currently pursuing.
$5.0M
Refinance
CMBS
The BSC Group is pleased to announce the closing of a $5.0MM CMBS loan that was used to refinance a self-storage property in Chandler, AZ. The borrower was able to capitalize on the low interest rate environment by locking into a 10-year fixed rate nonrecourse loan at 3.69%. The loan was underwritten at ~60% loan to value and included interest only payments for the full term of the loan. This loan was used to retire construction debt on a recently constructed property that leased to stabilization, allowing the sponsors to recapture most of their equity to be redeployed for future investment.
$6.24M
Refinance
CMBS
The BSC Group is pleased to announce the closing of a $6.24MM CMBS loan that was used to refinance the existing debt and reduce cost of capital significantly over the existing loan. The borrower was able to capitalize on the low interest rate environment by locking into a 10-year fixed rate loan at 3.35%. The loan was underwritten at ~45% of the purchase price and included interest only payments for the entire term. The sponsor was excited about the execution because it reduced interest cost for the next 10 years significantly enhancing the property's cashflow.
$6.1M
Construction/Mini-Perm
Bank
The BSC Group recently arranged an $6.1 million construction/mini perm loan for an Illinois based self-storage operator. The 70% loan to cost (LTC) financing package will be used to construct a multi story, state of the art self-storage facility in suburban Minneapolis, Minnesota. The construction financing package included 48 months of interest only financing, followed by a 24-month mini perm option amortizing on a 25-year schedule. Other features of this loan include a recourse "burn down" as completion and leasing hurdles are obtained, as well as a very attractive floating rate of 215 basis points (bps) over LIBOR during construction.
$42.0M
Refinance
Life Company
The BSC Group announced the closing of a $42M Life Company loan that was used to acquire and recapitalize a 6 property self-storage portfolio for an institutional sponsor on behalf of their new formed Joint Venture with a REIT partner. This 10-year loan was underwritten at ~50% of the contributed purchase price and the borrower rate locked the deal, which featured interest only amortization for the full term of the loan, at 3.62%.
$12.1M
Refinance
Credit Union
The BSC Group recently closed on the refinance of a three-property self-storage portfolio in Evansville, Ind., and Pine Bluff, Ark., in the principal amount of $12.1 million. Notably these loans were structured with the ability to earn out additional loan proceeds while the borrower completes property upgrades and increases occupancy, which was accomplished through an initial funding of $9.8 million, with the balance structured for earn-out after the first 12 months of the loan. The opportunity was funded through a Credit Union.
$7.5M
Construction/Mini-Perm
Bank
The BSC Group recently closed a $7.5M construction mini-perm loan for a New York based family office sponsor. The 60 percent loan to cost (LTC) financing package was structured with 48 months of interest only payments followed by 3 years of amortization on a 25 year schedule. This loan was aggressive priced and features a unique structure whereby the spread over Libor declines during the term of the loan as economic hurdles are met during lease up. In addition, once the certificate of occupancy is obtained the sponsor's recourse will be limited to 25% and will "burn off” entirely as economic and leasing thresholds are satisfied. The loan proceeds will be used to construct a state-of-the-art self-storage facility encompassing approximately 91K net rentable square feet of storage and more than 950 units in Bethpage, New York.
$71.0M
Acquisition
CMBS
The BSC Group recently closed a $71M CMBS loan for a Midwest based sponsor. Loan proceeds were used to acquire a 21 property self-storage portfolio spread across 4 states. The low leverage loan was less than 65% of acquisition cost and aggressively underwritten with a 10 year fixed rate term that included 5 years of interest only payments, followed by a 30 year amortization. The all in rate was locked under 4.15% evidencing the low interest rate environment. Self-storage remains in favor on Wall Street and it's a great time to be a borrower!