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Adaptive Re-Use Properties Financed for Self Storage

GARLAND, TX—The borrower plans to develop 100% of the vacant space of the former Wal-Mart into self-storage space coupled with a sports entertainment tenant taking the balance of the space.

By Lisa Brown | lisabrown | | Updated on February 19, 2016
Super Wal-Mart The loan was secured by a first lien on a former 223,000-square-foot Super Wal-Mart.
GARLAND, TX—A former Wal-Mart is poised to become a rentable climate-controlled self-storage space. Secured by a first lien on a former, now-vacant 223,000-square-foot Super Wal-Mart in Garland, TX and a 200,000 square foot shopping center anchored by a now-vacant former grocer in Houston, funding has been procured to the tune of $13.45 million. Dallas-based Revere Capital provided the funding. The borrower plans to develop 100% of the vacant space of the former Wal-Mart into self-storage space coupled with a sports entertainment tenant taking the balance of the space. Approximately half of the Houston property is leased to a Chuck-E-Cheese , a Go-Cart racing facility operator and other retailers. The borrower plans to convert the approximate 100,000 square feet of vacant shopping center space into high-quality self-storage space. Clark Briner , founder and principal of Revere Capital exclusively tells Globest.com:  “The market for buying self-storage properties is very strong right now and consumer demand for renting self-storage space is high, based on the lack of new construction supply between 2009 and 2012. Combined with the continued population growth in Texas during the last decade, this is a good project for Revere Capital to underwrite.” Loan proceeds were used to repay existing first mortgages on each of the two properties and tenant improvements for executed leases for the inline retail space at the Houston property. The Houston property is in the Northgate neighborhood approximately 18 miles north of downtown. In addition to the primary collateral, the loan is secured by a pledge of 90% of the ownership interests in a stabilized five-property portfolio of self-storage facilities owned by the borrower. Furthermore, the loan is also secured by a second lien on a former, now-vacant 170,000 square foot K-Mart in Corsicana, TX and a personal guaranty of the sponsor.  

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