KATY, TX-Houston-based Metro Mini Storage has obtained $3.3 million of permanent financing for the 59,650-sf, 574-unit Cinco Ranch. The 25-year, self-amortizing loan was inked at a 6.38% fixed-rate interest.
Collateralizing the loan is a 96%-leased mini-storage facility at 23250 Westheimer Parkway, completed in 2004. John Fenoglio, principal with Live Oak Capital Ltd. in Houston, says John Hancock Real Estate Finance in Boston funded the deal, its second one with the mini-storage developer. Earlier in the year, the developer inked a $4-million refinance of the 572-unit storage facility at 7474 Gosling Rd. in the Woodlands.
"It takes approximately 24 to 26 months to lease up a mini warehouse for re-stabilization and consideration of refinancing," Fenoglio tells GlobeSt.com. "That's why the gap between construction and permanent financing."
Although most loans are 10-year self-amortizing, Fenoglio says the borrower tacked on a few extra years because of the good terms and low interest rate. "They wanted to lock that in for the life of the investment," he adds.
Fenoglio says several lenders were interested in funding the deal due to the borrower's 30-year track record. "It was a spirited competition, but John Hancock brought speed and certainty to the situation. That was important to the borrower," he says. The prior relationship helped to speed the process.
Fenoglio says the door is open for more deals with Metro Mini because it is planning additional developments. "They're actively pursuing several sites right now throughout the area," he says.
© 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.