COSTA MESA, CA-Lenders are competing fiercely to fund loans for self-storage facilities, and multiple institutional investors are seeking experienced storage operators to build up portfolios, according to Tom Sherlock, one of the three principals at Talonvest Capital Inc., a self-storage and commercial real estate advisor. As GlobeSt.com reported earlier today, Talonvest recently completed a self-storage portfolio refinancing for BRB Development Co., has closed more than $172 million of storage loans in the past year and has another $144 million of self-storage capitalizations currently in process.
The level of loans being completed for this asset class is being compared to pre-recession levels. “The competition for loan volume is reminiscent of 2005 through 2007,” said Sherlock in a prepared statement. “We've been saving our clients hundreds of thousands of dollars regularly by managing a competitive bid process. It's a great time to borrow.”
Talonvest recently completed $13 million of self-storage loans for Pogoda Cos. with a European-based bank. Maurice Pogoda, president of the firm, said in the statement, “Talonvest successfully negotiated multiple deal points with the lender on our behalf. They were an effective advocate, and we look forward to working with them again.
As GlobeSt.com reported earlier this month, the appetite for self-storage is strong but the available properties are fewer and further between this year. Still, Marcus & Millichap's Mele Group is getting some smaller deals done. Embassy One U-Store, a 52,741-rentable-square-foot self-storage facility in Port Richey, FL, just traded for $2.6 million. And Oxford Storage, a 46,750-rentable-square foot self-storage facility located in Fern Park, FL, traded for $2.2 million.
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Carrie Rossenfeld
Carrie Rossenfeld is a reporter for the San Diego and Orange County markets on GlobeSt.com and a contributor to Real Estate Forum. She was a trade-magazine and newsletter editor in New York City before moving to Southern California to become a freelance writer and editor for magazines, books and websites. Rossenfeld has written extensively on topics including commercial real estate, running a medical practice, intellectual-property licensing and giftware. She has edited books about profiting from real estate and has ghostwritten a book about starting a home-based business.
