The BSC Group, a Chicago based self storage and commercial real estate financing advisor, has closed a $98.15 million CMBS loan for the refinance of a 22 property self storage portfolio with assets located in Texas, Georgia, Alabama, Nevada, Washington, North Carolina and Virginia. The portfolio is comprised of 1,366 million square feet totaling 10,035 units and 479 parking spaces. The 10-year non-recourse, full term interest only loan was aggressively underwritten to a 7.5% debt yield and bifurcated into a first and second mortgage.
Iron Guard Storage, a national self storage owner and operator, engaged The BSC Group to facilitate a recapitalization of the subject portfolio with the goal of untrapping significant equity to be redeployed into opportunistic self storage acquisitions going forward.
BSC Group Principal Devin Huber commented, “The timing of this transaction was ideal given the market had a strong appetite for this unique and well managed portfolio. The sponsor’s ability to realize significant lift in the assets’ cash flow since acquisition played an influential role in securing such an aggressive loan.”
David Ross of Iron Guard Storage stated, “Going into the transaction we knew it was a market leading request. The relationships and lenders The BSC Group brought to the transaction delivered a loan package that exceeded all of our expectations. Their acute knowledge of the self storage industry and capital markets was consequential during the underwriting and closing of the loan. We are thrilled with the final result.”
The BSC Group has now secured over $165 million in debt financing on behalf of Iron Guard Storage. Shawn Hill, BSC Group Principal offered further comment, “Our goal is to work along with our clients to execute at the edge of the market, which is exactly how this transaction transpired. We are fortunate and grateful to have deep rooted relationships with clients such as Iron Guard who recognize the value The BSC Group delivers.”
The BSC Group is extremely active in the self storage sector, having closed more than $225 million in self storage financing to date in calendar year 2018.
About The BSC Group
The BSC Group, LLC (TheBSCGroup.com) was formed in 2009 and provides mortgage brokerage, financial consulting, and loan workout solutions to commercial property owners. Utilizing its market expertise and capital source network, the firm arranges debt and equity financing for commercial real estate investments nationwide, with a special emphasis on the self storage asset class.