Self Storage Portfolio
Lending - CMBS - $26.2M
Greystone provided its first CMBS loan in the self-storage space in the amount of $26,250,000 for the acquisition of 23 separate self-storage facilities across Ohio and Kentucky. The loan was originated by Greg Krafcik, a Managing Director at Greystone, on behalf of Elite Stor Capital Partners, LLC a West Palm Beach, FL-based equity investor focused on the self-storage space industry.
The acquisition financing for the large portfolio of assets spread across two states was completed in just 47 days. Terms of the 10-year CMBS loan include a 9% debt yield, 75% LTV, a spread of 205 bps over 10-year swaps and 3 years of interest only followed by a 30-year amortization schedule. Six of the self-storage facilities are located in Ohio, with the remaining 17 located in Kentucky. Elite Stor Capital Partners plans to optimize the portfolio by incorporating modernized technology and other updated service features to improve operations, including placement of new management.
“We were pleased with the execution of this loan by Greystone, which was our largest portfolio acquisition to date in this space,” said Benjamin Macfarland, CEO of Elite Stor Capital Partners. “Over the last 12 months our company has increased its portfolio investments from five properties to 35 properties, and this transaction was critical to our company’s continuing growth plan. Greg and his team went above and beyond to ensure a smooth transaction. As an equity provider in the self-storage space, we look forward to partnering with Greg and Greystone on future opportunities and are actively looking for new operators and deals to invest in.”
“We are continually looking to expand our reach into additional asset classes, and are excited to have closed our first deal in the self-storage space,” said Rob Russell, Head of Production for Greystone’s CMBS team. “The appetite for CMBS is ripe for a number of asset classes, so we will likely be seeing an increase in this type of loan execution throughout the year.”