X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

(For more retail coverage, click GlobeSt.com/RETAIL.)

MT AIRY, MD-United Stor-All, an owner operator of self-storage facilities, has picked up a nine-asset portfolio from a limited private partnership as part of an equity partnership buy-out. The buyer funded the deal with a $77.25-million loan.

The 601,901-sf portfolio has properties in Florida, New Jersey, New York, Pennsylvania and Virginia. Buchanan Storage Capital, a subsidiary of real estate investment bank Buchanan Street Partners in Newport Beach, CA, arranged the financing for United Stor-All, which was in the market for a five-year, interest-only vehicle with a fixed rate.

Jim Davies, a principal with Buchanan Storage Capital, tells GlobeSt.com that more than 20 capital market sources were approached, but only two were willing to provide a structure that could meet United Stor-All’s requirements. The partnership buy-out was ultimately financed by a non-recourse financing underwritten to less than a breakeven debt coverage ratio and provided interest-only, fixed-rate terms with prepayment flexibility, Davies says. “This is a type of custom financing that is only available for a larger owner operating with the kind of track record that United Stor-All has,” he adds.

United Stor-All currently owns more than 22 self-storage properties and manages more than 30 nationwide. Davies says the company is in an aggressive expansion mode right now, with plans to acquire numerous assets and develop new properties over the next few years. He says the nine properties are class A assets that were developed or acquired over roughly a five-year period by the partnership.

Buchanan Storage Capital plans to replicate the structured financing–unique for the asset class in Davies’ opinion–for other self-storage operators. Davies says reports the firm has just closed a multiple-property financing this week for a self-storage company in California. “We are also in the process of financing two other portfolios in the Midwest and northeast with the same basic structure,” he adds.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 3 free articles* across the ALM subscription network every 30 days
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

GlobeSt. NET LEASE 2020Event

This conference brings together the industry's most influential & knowledgeable real estate executives from the net lease sector.

Get More Information
 

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.