Holliday Fenoglio Fowler, L.P. (HFF) announced today that it has arranged financing and joint venture equity totaling $19.2 million for a two-property self storage portfolio totaling 1,106 units in Pennsylvania and closed the $11.65 million sale of one of the properties.
HFF arranged the $5 million joint venture equity partnership between Self Storage Capital Partners and a private equity firm and, on behalf of the partnership, placed the $14.2 million, fixed-rate acquisition financing with a CMBS lender for Penns Trail Self Storage and Lanco Mini Storage Center. Additionally, working on behalf of the seller, JEB Group, LLC (d/b/a) All-Time Self Storage, HFF closed the sale of Penns Trail Self Storage. Self Storage Capital Partners purchased the asset free and clear of existing debt.
Penns Trail Self Storage is a Class A, multi-story facility built in 2010. The stabilized, 495-unit property was more than 95 percent occupied at the time of sale. Located at 104 Penns Trail in the eastern part of the Philadelphia suburb of Newtown, Penns Trail Self Storage is situated in an affluent area with more than 127,000 residents with a household income averaging more than $130,000 annually living within a five-mile radius of the property. The facility has easy access to Interstate 95.
Completed in 2006, the 611-unit Lanco Mini Storage Center is 88 percent leased. The property is located at 1813 Old Philadelphia Pike (Route 340) in Lancaster, a central Pennsylvania suburb near Harrisburg. Situated within a large population center of more than 150,000 residents living within a five-mile radius, Lanco Mini Storage Center has visibility from an average of 15,970 vehicles per day along Route 340 and is just off U.S. 30, which has direct access into Harrisburg.
The HFF team was led by managing director Richard Schontz as well as managing directors James Conley and Scott Aiese, director Barbara Guffey and associate director Matthew Weckesser.
"The purchase of Penns Trail Self Storage represents a suburban Philadelphia record-setting price per square foot of $234,” Schontz said. “Pricing on this transaction was driven by limited supply, historically strong sector performance and the execution on the sale, debt and equity placement by the HFF team.”
“The financing market for this transaction was very competitive, yielding 12 quotes from an array of financing sources,” Conley added. “The strong lender interest for this assignment helped drive maximum leverage, I/O and pricing for the borrower.”
“We are pleased to acquire these high-quality assets in what was a very smooth transaction,” said Matt Lang, Head of Operations for Self Storage Capital Partners. “We look forward to continuing to work with the HFF team as we execute our aggressive growth plan.”
About Self Storage Capital Partners
Self Storage Capital Partners (SSCP) is a Philadelphia-based, privately-held real estate investment and management company focused on delivering superior returns to its investors. Focused exclusively on self storage properties, SSCP understands that its properties are as much an operating business as they are real estate assets. SSCP collectively has over 20 years of experience in underwriting, acquiring, operating and repositioning self storage properties. Visit selfstoragecp.com for more information.
About JEB Group, LLC (d/b/a) All-Time Self Storage
The owners at All-Time Self Storage® have been in the self storage business since 1996 and currently operate facilities in Pennsylvania in Lancaster, Bucks and Montgomery counties. The company provides professional and courteous service to its local customer base to make their storage experience easy and efficient. Visit alltimeselfstorage.com for more information.
HFF and HFFS (HFF Securities L.P.) are owned by HFF, Inc. (NYSE: HF). HFF operates out of 23 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.