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HFF Arranges $19.2 Million Equity and Financing for 2-Property Self Storage Portfolio

Posted: 9/23/2016
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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 Citigroup for Penns Trail Self Storage and Lanco Mini Self Storage. Additionally, working on behalf of the seller, 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 facility 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 Newton, Penns Trail Self Storage is situated in an affluent area with more than 127,000 residents living within a five-mile radius with a household income averaging more than $130,000 annually. The facility has easy access to Interstate 95.

Completed in 2006, the 611-unit Lanco Mini Storage is 88 percent leased. The property is located at 1813 Old Philadelphia Pike (Route 340) in Lancaster, a central Pennsylvania near Harrisburg. Situated within a large population center of more than 150,000 residents living within a five-mile radius, Lanco Mini Self Storage has visibility from an average of 15,970 vehicles per day along Route 340 and is just off U.S. 30 with 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.”

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 http://www.selfstoragecp.com for more information.

About 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 and Bucks counties. The company provides professional and courteous service to its local customer base to make their storage experience easy and efficient. Visit https://www.alltimeselfstorage.com for more information.

About HFF

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.

CONTACTS:

RICHARD SCHONTZ
HFF Managing Director
(484) 532-4200
rschontz@hfflp.com

JAMES CONLEY
HFF Managing Director
(484) 532-4200
jdconley@hfflp.com

SCOTT AIESE
HFF Managing Director
(212) 245-2425
saiese@hfflp.com

BARBARA GUFFEY
HFF Director
(713) 852-3500
bguffey@hfflp.com

KRISTEN MURPHY
HFF Director, Marketing
(617) 338-0990
krmurphy@hfflp.com

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