X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

(To read more on the debt and equity markets, click here.)

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.

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 Awards 2020Event

These awards honor the industry's most influential and 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.