Modesto Self-Storage

NEWPORT BEACH, CA-Owners of two properties in California and one in Idaho have refinanced them with more than $14 million in loans arranged by the Newport Beach-based Alison Co. in three separate transactions. The loans included $3.2 million for a 649-unit Premier Self Storage Facility at the intersection of Sylvan Avenue and Oakdale Boulevard in Modesto, CA; $7 million for a 62,963-square-foot grocery-anchored retail building at the intersection of Waterman Road and Elk Grove Boulevard in Elk Grove, CA and $3.85 million for two apartment complexes totaling 130 units at East Warm Springs Avenue and South Broadway Avenue in Boise, ID.

The self-storage facility loan in Modesto paid off a maturing conduit loan and covered closing costs for the borrower, a private investor based in Northern California, according to Shaun Moothart of the Alison Co., who arranged the financing with one of Alison’s life company correspondents. Moothart tells GlobeSt.com that the fixed interest rate was locked at application.

“This ability to lock the interest rate for up to 75 days can be a major advantage in a very volatile market in comparison to many banks and other lenders who do not offer the ability to lock the rate until the loan has been approved, often taking 30 to 45 days before the borrower knows for certain what the interest rate is going to be for the term of the loan,” Moothart says.

The new financing is a 20-year loan with a 20-year amortization. Moothart says that the Alison Co. worked alongside both borrower and lender to agree upon a structure that satisfied both sides of the transaction, which he describes as “a working capital solution for a unique property type located in a secondary market.”

Elk Grove Retail

The grocery-anchored center in Elk Grove, CA is 100% occupied by Bel Air Market, a subsidiary of Raleys Corp, and is part of a larger neighborhood center with various retail tenants, banks and restaurants. The loan was funded to acquire the property as part of a 1031 exchange for the borrower, a San Francisco-based private investor, according to Jim Deal of the Alison Co., who arranged the financing with one of Alison’s life company correspondents. It is a fixed, 25-year loan with a 25-year amortization.

Boise Apartments

The two apartment complexes in Boise, ID are across the street from each other, one with 78 units and one of 52 units, and are 91% occupied. The refinancing paid off existing debt and provided approximately $1.5 million of cash out to the borrower, an Idaho-based private investor, according to Carl Fuller of the Alison Co., who arranged the 10-year, 30-year amortizing, mid-5% Freddie Mac loan.

Moothart tells GlobeSt.com that the loans illustrate how Alison is pursuing and closing deals nationwide in all markets and all property types with its correspondent lenders. The company, founded in 1934, operates as a servicing correspondent representing more than a dozen life insurance companies and also maintains in-house closing and servicing departments. It operates from offices in Newport Beach, Los Angeles, Phoenix and Las Vegas.