ENGLEWOOD, NJ--The BSC Group has arranged $74.6 million in financing for the acquisition of a 19-property self-storage portfolio by Sovran HHF Storage Holdings II, a joint venture of Sovran Self-Storage and an affiliate of Heitman LLC. A property in Englewood and 16 others are located in New Jersey, with the remainder in Pennsylvania.
The 4.8%, non-recourse loan has a 10-year term, with five years interest only. The financing package was arranged with PNC Bank, NA, which also held a mortgage on the property with a previous owner, Shawn Hill, a principal with the BSC Group, tells GlobeSt.com. “This is very high-quality real estate, a core product,” Hill says. “The bank knew the assets.”
The 19 properties comprise 1.4 million square feet of net rentable storage space. BSC worked closely with Locke Acquisition Group, which is engaged primarily in identifying self-storage properties for Sovran and negotiating with the sellers.
The properties are 80% leased, and the deal did have some complexity. BSC, in conjunction with its exclusive alliance partner, 1st Service Solutions, also assisted in defeasing three loans on some of the properties, utilizing Commercial Defeasance LLC. It also assisted with a loan assumption.
The publicly owned Sovran owns and/or operates more than 400 self-storage facilities, under the trade name Uncle Bob’s Self Storage. This joint venture is its second with a Heitman affiliate. Sovran contributed 15% of the equity in the joint venture and Heitman 85%.
“We are excited to launch our second joint venture with such an attractive group of properties,” Sovran CFO David Rogers said in the August announcement of the acquisition. “These acquisitions are class A stores that expand our footprint into New Jersey.”
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