The BSC Group LLC, a commercial real estate financing adviser, recently arranged $31.8 million in loans on behalf of self-storage and commercial-property owners.
In one transaction, BSC arranged the financing for the acquisition of a self-storage portfolio in the South. “The institutional client did not want to deal with the structural limitations of a CMBS [commercial mortgage-backed security] execution,” said Shawn Hill, a BSC principal. “As a result, we were able secure a balance sheet execution with a national bank, which offered a compelling 10-year, non-recourse option with more relaxed structural features.”
On another assignment, the firm secured a more straightforward $3.8 million CMBS loan on a 65,000-square-foot facility. The transaction, which consisted of a tenant-in-common (TIC) ownership structure, was notable because in spite of the relatively small loan size, there were several conduits that competitively bid for the business.
Three recent BSC transactions were funded using credit unions. All three were fixed-rate, five-year loans with open pre-payment, providing a hedge for the borrowers if rates continue to drop or in the case of sale or refinance. These deals represented 136,000 square feet of self-storage space in three different western states.
In other transactions, the firm structured a $1.6 million refinancing package for a recently constructed mixed-use retail and multi-family property on Chicago's Near West Side. The company also successfully sourced a $2.4 million regional bank loan for a 110,000-square-foot self-storage facility in Arizona. Both of these transactions offered five-year terms and 25-year amortizations with low rates.
“Our mission at The BSC Group is to stay abreast of the myriad of lending options available in the capital markets and then to deliver the most appropriate solution available to meet the client’s specific financing objective,” said Devin Huber, a principal with the firm. “It’s important to note that many different programs are once again active, as evidenced by the transactions we have recently executed.”
Hill and Huber observe local and regional banks becoming more competitive for loans, and credit unions are more willing to lend.
Based in Chicago, The BSC Group was formed in 2009 and offers financial and loan advisory, mortgage brokerage and loan-workout solutions to commercial real estate property owners and investors, with a special emphasis on the self-storage market.