Granite City Self-Storage
Self-Storage Loan from
William DeFanti of PSRS arranged the permanent loan of a self-storage facility in Mount Airy, North Carolina. The subject property sits on 7.4 acres and offers 426 rentable storage units. A differentiating factor with this transaction was that 100% of the equity was syndicated by the borrower, with most of the syndicated money coming from 401K and IRA retirement accounts. Many lenders do not allow this but the lender, in this case, allowed for the equity to come out of the retirement accounts. PSRS was able to fund the loan at 70% loan-to-value and provide a 10-year term with a 30-year amortization schedule. A few operational efficiencies will allow the borrower to increase future income, which was appealing to the lender and allowed them to fund a more aggressive loan with a zero-prepayment penalty.