Property Description
This Class A storage facility located at the gateway to Napa Valley consists of 547 storage units along with 133 climate-controlled units , as well as pallet storage for wine. Built in 1999, this well located storage facility’s loan was due to mature and the Borrower wanted to maximize leverage and pull cash out above their original development costs.
Investment Scenario
The partnership self-managed the asset, and had since pulled out all original equity. Given current market conditions and a bias against “cash-out” refinance due to broader market conditions, there were very few lenders willing to loan on an asset that no longer had any cash equity in the deal.
Solution
Steelhead Capital marketed the request to over 40 different lenders nationwide ranging from CMBS lenders, life companies, regional banks and mortgage REIT’s. Ultimately, Steelhead was able to identify a small handful of lenders actively considering self-storage and delivered a non-recourse storage loan to refinance the underlying existing debt and provide over $2m in “cash-out” to the Borrower.
Loan Type: Loan Type: Non-recourse, 10-year fixed rate commercial loan
Loan Amount: $9m
If you are interested in exploring a similar solution for your investments, please submit a secure loan request and one of our expert advisors will do their best to assist your financing needs.