Ammon Storage

Transaction description

William DeFanti of PSRS arranged $5.25 million in cash-out refinancing for a self-storage property in Ammon, Idaho. The subject property is comprised of 381 units. Given the lender’s comfort in the market and understanding of the lack of storage supply and high demand, the subject property leased up and stabilized within eight months. That timeframe is significantly ahead of schedule and superior to the national average lease-up time of 24-36 months, which proved to the lender that there was significant demand in the market despite the market’s tertiary location. Given how tight the market was, the lender was willing to provide $1 million of funds for 100% of Phase II development costs without seasoning on the stabilized income. PSRS was able to provide for its client a seven-year fixed-rate term with a 30-year amortization. The loan carries a 3.7% interest rate along with no prepayment penalty.