In the latest sign that the securitized lending market is bouncing back, Strategic Storage Trust Inc. has refinanced 11 properties with a $29.13 million loan provided by Citigroup Global Markets Realty Corp., a commercial mortgage-backed securities (CMBS) lender. CBRE Capital Markets arranged the first mortgage for a term of 10 years at a fixed interest rate of 5.77% and a 30-year amortization.
“This financing was our first time utilizing a CMBS execution since the 2007 change in the market,” said Michael Schwartz, CEO of Strategic Storage Trust, based in Ladera Ranch, Calif., in a Feb. 3 news release announcing the
The 10-year loan, which carries a low interest rate, will be accretive to Strategic Storage Trust’s funds from operations going forward as the money is invested in new acquisitions, adds Schwartz.
The 11 self-storage facilities refinanced total 7,785 units and 944,500 sq. ft. The properties had a stabilized average occupancy of 77% at the time of funding. The self-storage facilities are located in metro
Strategic Storage Trust is the first and only public, non-traded real estate investment trust in the self-storage sector. The company is one of five publicly registered self-storage REITs in the United States. Its portfolio includes approximately 32,000 self-storage units and 3.9 million rentable sq. ft. of storage space.
The CBRE Capital Markets team of Eric Tupler, vice chairman, and Josh Simon, vice president, arranged the financing.