ATLANTA—Self-storage assets are winning the confidence of investors in the Southeast and beyond. Morningstar Properties and its venture partner Harrison Street Real Estate Capital just secured a $20 million loan to refinance a seven-property self-storage portfolio across the Southeast.
Morningstar worked with Talonvest Capital, which identified multiple financing options on the 360,000-square-foot self-storage portfolio. The loan included senior and mezzanine notes for self-storage properties in North Carolina, South Carolina, and Georgia.
Eric Snyder, Jim Davies and Tom Sherlock, principals of Talonvest, handled the assignments on behalf of Morningstar. Sherlock tells GlobeSt.com there was a significant amount of competition for the self-storage portfolio loan.
“Potential capital providers included multiple bank balance sheet lenders, several debt funds and a large number of CMBS lenders,” Sherlock says. “With the growing number of lending sources and their increasing appetite, Talonvest has recently experienced a shift, towards the borrower’s favor, in the self storage and commercial lending market.”
From Sherlock’s view, the number of lenders has increased during the summer months. At the same time, pricing is more attractive, leverage potential is increasing, and loan terms and structures are less rigid in our experience.
“Encouragingly for the longer term health of the market, lenders seem to be negotiating these things while maintaining an awareness of risk,” Sherlock says. “Overall, the perm lending market appears to be as healthy and active as it has been in several years.”
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