Transaction Overview
George Smith Partners arranged $6,647,000 of non-recourse financing for the acquisition and reposition of a 1,713-unit self-storage facility in the Pacific Southwest. The national balance sheet lender provided a non-recourse loan up to 80% of total project cost that includes funding 100% of future planned expenses (approximately $1,100,000) to upgrade the property’s roofs, parking lots, curb appeal, signage and down units. Interest expense is not incurred on the capital improvement funds until drawn. Borrower cash flow is maximized as the loan is interest only during the initial three-year term. The loan floats at 4.25% over one-month Libor and carries two one-year extension options.
