Nantucket Self-Storage Owner Struggles With $20M Loan

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Massachusetts-based Cliff Acquisitions Inc., owner of a commercial property portfolio that includes a large self-storage facility on Nantucket Island, Mass., is attempting to renegotiate the terms of the $20 million loan backing its property.

Owned by Paul Steinfurth, the company defaulted on the loan last spring, drawing on $194,000 in cash reserves in June to help meet its monthly debt-service payment of $99,028. The $20 million loan was originated in April 2007 by the Royal Bank of Canada.

The Cliff portfolio, including Nantucket Storage Center, was originally appraised at $25 million. It was re-appraised in June for $15.8 million.

The 93,500-square-foot self-storage facility is managed by Denver-based Executive Self Storage.  It was 75 percent occupied as of February. In 2009, it generated $1.18 million in net operating income and paid out $1.17 million in debt-service costs, according to financial filings.

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