NEWPORT BEACH, CA-Locally based Buchanan Storage Capital and Dallas-based RBC Capital Markets have signed an agreement for RBC to finance deals for Buchanan Storage, a division of Buchanan Street Partners that specializes in financing storage properties. The agreement is through RBC Capital Markets' Real Estate Mortgage Capital division, which will be the exclusive provider of CMBS financing for Buchanan Storage Capital.
RBC has agreed to finance self-storage properties through Buchanan, and in turn Buchanan has agreed to provide RBC the right of first refusal on CMBS self-storage loans. The partners call their deal Buchanan Fixed Rate Direct, saying it is designed to provide self-storage owners with faster closings and to streamline the lending process.
In the first 60 days of operation, the partnership has quoted and secured more than $50 million in storage financing. Most recently, they closed the first two self-storage loans totaling $13 million, notes Dan Smith, managing director of RBC Capital Markets' Real Estate Mortgage Capital division.
Although the partnership is new, RBC and Buchanan have both worked in the CMBS markets. Principals of the two firms have worked together on deals for the past eight years, according to Jim Davies and Eric Snyder, principals of Buchanan Storage Capital.
RBC Capital Markets launched the Real Estate Mortgage Capital division in September with the hiring of Smith, Brent Wessel and Gary Fairbanks to focus on CMBS financing. Buchanan still plans to continue working with other banks and financial institutions for self-storage properties in need of balance sheet or lending other than CMBS, according to Davies and Snyder.
© 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.