KILLEEN, TX-An investor from Sacramento has obtained a $7-million loan to refinance a 151,540-sf, 210-unit Storage Kings of West Killeen. SK West Killeen LP and Susac-Williams II LLC received the funding to pay off loan for acquisition and additional construction.
"We'd arranged an acquisition loan for them a little more than a year ago, and at the time, there'd been a construction component as well," explains Damon Reed, vice president of GMAC Commercial Mortgage Corp.'s Birmingham, AL office.
Reed, who brokered the financing through CIBC Bank in Toronto, ON, Canada, adds that the new permanent loan was obtained to pay off an original bridge loan, which helped the owners acquire and add 210 units to the 1986-constructed facility.
The storage facility is located at 4201 Clear Creek Rd. on more than 18 acres and consists of 22 buildings and a total of 1,249 storage units, as well as an office and management apartment building. According to Reed, the 90% occupied facility isn't the borrower's only asset in Texas.
"The borrower has three self-storage properties in Austin and a couple of manufactured home communities in Houston," Reed tells GlobeSt.com, adding that he's arranging financing for the borrower's mobile home park in Houston.
The 10-year Storage King loan carries a 6.01% fixed rate, a 30-year amortization and has a 75% LTV. Reed notes that the financing was not difficult to obtain. "We were very familiar with the property and the borrower," he explains. "Their business plan was executed to a T, and everything was built ahead of schedule."
© Arc, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.