For today's #MattsMinute we’re going to talk about the recent closing of Alliant Storage.
Hello everyone. Welcome to Matt’s Minute.
Today we’re talking about the closing of Alliant Storage, a single loan on two self-storage properties totaling over 800 units.
The borrower was an existing client that approached us with plans to grow their portfolio following the sale of another storage property. He identified two properties to acquire using his 1031 exchange funds, however both properties were severely mismanaged and did not cash flow well enough for a traditional permanent loan.
Since immediate perm financing was not available, we underwrote to provide initial funds to meet acquisition requirements. We then structured an earn-out of additional funds, available to the borrower to make capital improvements, improving the value and cash flow of his project.
The interest rate is fixed for the first 5-years and held-back funds are available for the first 18-months. Over that initial period, debt service payments are interest only. The loan then transitions to a permanent loan, amortized over 25-years.
With this structure, the borrower was able to obtain a low-cost bridge structure, at a sub 4% rate, with flexible prepay.
Please call me to discuss your next self-storage or bridge loan request.
Contact me today for current rates!
Matthew Hoyt, Senior VP
As your exclusive advisors, CommCap utilizes proprietary systems, market expertise, and years of experience to se
cure aggressive financing options that best fit your property. Exclusive correspondent and servicing relationships with Life Insurance Company, CMBS, and Agency lenders ensure a broad and in-depth representation of current market conditions. Our team of advisors craft a loan structured to enhance revenue and allow you to focus on increasing cash flow.
We do not list, sell, manage, or lease property. We only arrange financing and are the best at what we do.