Holliday Fenoglio Fowler, L.P. (HFF) announced today that it has arranged a $6.4 million refinancing for Airport Road Storage, a 480-unit, 60,750-square-foot self storage facility in Monterey, California.
HFF worked on behalf of the borrower, 21st Century Storage, to place the 20-year, fixed-rate loan with Deutsche Bank. Loan proceeds were used to refinance an existing mortgage.
Airport Road Storage is located at 1118 Airport Way adjacent to Monterey Regional Airport in Monterey, a city in the heart of the California’s Central Coast. The property is situated on a 36,444-square-foot site in the Monterey Peninsula Self Storage market. Ten percent higher than the national average, this market has an average occupancy rate of 95 percent. The three-story self storage facility was 96 percent occupied at the time of closing and features individual door alarms for each of the 478 non-climate and two climate-controlled units in addition to video monitoring and gated access.
The HFF debt placement team representing the borrower was led by managing director Michael Klein. The 21st Century Self Storage team was led by Clayton Gentry.
“The property is situated on a ground lease to the Monterey County Airport Authority that has only 31 years remaining,” Klein said. “This presented a challenge for a lot of lenders, who required more term. As a result, HFF was engaged to secure a long-term, self-amortizing loan that would enable the borrower to put the loan to bed for 20 years and take interest risk out of the equation. Deutsche Bank really understood the market and property type and was able to get comfortable with the complicated ground lease structure. They performed flawlessly.”
About 21st Century Self Storage
21st Century Self Storage is an Aspen, Colorado-based commercial real estate investor, manager and developer that currently owns and manages five storage properties and has recently begun development of another. For more information, visit www.21css.com.
HFF and HFFS (HFF Securities L.P.) are owned by HFF, Inc. (NYSE: HF). HFF operates out of 22 offices nationwide and is a leading provider of commercial real estate and capital markets services to the U.S. commercial real estate industry. HFF together with its affiliate HFFS offer clients a fully integrated national capital markets platform including debt placement, investment sales, equity placement, advisory services, loan sales and commercial loan servicing. For more information please visit hfflp.com or follow HFF on Twitter @HFF.