The Lock Up Self Storage/Evergreen Storage LLC has purchased 18 self-storage facilities in six states for $131.7 million. The properties comprise 13,422 units in 1.15 million net rentable square feet. The assets are in Florida, Hawaii, Illinois, Massachusetts, Minnesota and New Jersey. As of April, they were collectively 86.5 percent occupied, according to a press release issued by the lender.
Financing was secured through Prudential Mortgage Capital Co., the commercial-mortgage lending business of Prudential Financial Inc. It includes a $20 million, seven-year, floating-rate tranche, and a $111.7 million, 10-year, fixed-rate tranche.
The majority of the properties feature modern construction and are in predominantly dense, high-income urban locations, Prudential officials said. The assets were built or converted to self-storage between 1982 and 2009.
“As the U.S. economy improves, with many Americans choosing to rent instead of own, the fundamentals of the self-storage market continue to improve, especially for high-quality, proven assets in major markets,” said Frances Bo, a loan originator with Prudential Mortgage Capital.
“This is now our third large portfolio transaction with the Prudential Mortgage Capital team, and we find they uniquely understand and appreciate our sector, our company and our specific assets,” added Rick Hielscher, a partner with The Lock Up.
Prudential Mortgage Capital is a nationwide commercial and multi-family mortgage finance business with more than $79 billion in assets under management and administration. The company maintains a loan-servicing portfolio of approximately $76.7 billion.
The family-owned Lock Up Development Group, an affiliate of BRB Development LLC, has offered self-storage services since 1976. The Lock Up currently operates self-storage facilities in eight states. It owns and manages more than 1.6 million square feet of self-storage.
- BusinessWire: Prudential Mortgage Capital Company Provides $131.7 million Self-Storage Loan
- The Lock Up Self Storage: Website