Storage Opportunity received slightly more than $13.2 million in acquisition financing with a loan-to-value of 85%, says Cheri Grossman, regional director of investments for Wrightwood Capital's Chicago office. The loan-to-value means the purchase price was just less than $16 million. There were four different sellers for the properties. Grossman would not disclose the sellers but said that one was a national company and some were local companies. The term of the loan is 36 months and was sourced through Neal Gussis, with Beacon Realty Capital.
The facility in Milford was constructed in 1999 and has 463 units in nine one-story and two-story buildings. The facility in Brockton was constructed in 1980 and has 661 units in eight single-story buildings. The facility in Taylor was constructed in 1999 and has 412 units in 13 single-story buildings. The facility in Romulus was constructed in 2001 and has 436 units in eight single-story buildings.
Less than 70% of the units are rented in the portfolio, Grossman says. The properties had previously been mismanaged, allowing a value-add opportunity, she says. All of the properties will be upgraded, including renovating the leasing offices, repaving the parking lots, increasing security, improving the landscaping and improving the marketing for the facilities. The estimated cost for the upgrades is "just under $1 million," she says.
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