The property, which was built in 2003, is the largest self-storage facility on the island. On the borrower's behalf, an earn-out provision was included in the deal enabling the owner to maximize proceeds over an extended period.
Henderson says that concerns over where the interest rates are headed prompted the client to move to "put the financing to bed on this project." Henderson that because the asset is so new, the net operating income has not yet stabilized and traditional term debt would have trapped a lot of equity. "We were able to negotiate a loan structure that achieved all of these requirements."
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