Beacon Realty Capital, a Chicago-based commercial real estate financial services firm with a specialized self-storage lending group, closed $20.3 million in self-storage loans in the quarter ending Dec. 31, 2006. The company completed these transactions with five different lenders for properties in Alabama, Delaware, Florida, Illinois, New York, Texas and Wisconsin.
The 4Q transactions used a variety of lending techniques. In one, Beacon arranged for an earn-out where the borrower was able to pay off his existing property debt and access a portion of his initial investment at the funding of the new loan. In nine months, the borrower will be able to increase his leverage based on the facility's fully stabilized value. In another transaction, Beacon's team was able to achieve an 85 percent leverage level for a $7.5 million facility acquisition. The company also secured fixed-rate debt with interest-only terms for three to five years on several of the period’s transactions.
Established in 1985, Beacon arranges debt and equity financing for new and existing projects, advises on the acquisition and disposition of real estate assets, and provides commercial loan servicing for correspondents. In 2006, the firm closed loans totaling more than $683 million. For more information, visit www.beaconrealtycapital.com.