The property, which was built in 2003, is the largestself-storage facility on the island. On the borrower's behalf, anearn-out provision was included in the deal enabling the owner tomaximize proceeds over an extended period.
Henderson says that concerns over where the interest rates areheaded prompted the client to move to "put the financing to bed onthis project." Henderson that because the asset is so new, the netoperating income has not yet stabilized and traditional term debtwould have trapped a lot of equity. "We were able to negotiate aloan structure that achieved all of these requirements."
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