Stor-It Storage

Transaction description

William DeFanti of PSRS arranged the $3.2 million cash-out refinance of a self-storage facility in West Jordan, Utah. The subject property is a 418-unit, Class A, and newly built storage facility that opened 17 months ago and just reached stabilization. The borrower purchased the land, entitled it for the current use, and then developed 357 storage units. A differentiating factor for the lender was that they were able to underwrite on a T-1 given that it was recently stabilized. The borrower favored this loan because they are planning on doing a phase II developing more units and they will be able to keep their rate fixed. Once phase II is built and stabilized, the lender is willing to do a top-off loan to increase their overall loan amount. The borrower will keep their fixed-rate loan on phase I with the ability to recapitalize with a top-off loan increasing their loan amount upon stabilization of phase II.