American Spectrum Realty Inc., which operates self-storage facilities under the 1st American Storage brand, obtained a new, working-capital loan of $6 million. Dunham & Associates Holdings Inc. will fund the loan to American Spectrum Dunham Properties LLC, a wholly owned subsidiary of American Spectrum Realty Inc. The first tranche, in the amount of $3 million, was advanced on Jan. 3. A second $3 million advance will be made within 90 days.
These funds allow us to invest in managing the assets of a recently acquired portfolio of real property, acquire additional properties and portfolios to manage as well as invest in improving properties for investor/partners in our legacy portfolio, said William J. Carden, CEO of American Spectrum.
The five-year, interest-only loan bears simple interest at 8 percent per annum during the first year and 12 percent per annum for the remainder of the term. All accrued interest and unpaid principal outstanding is due in full in five years.
American Spectrum Realty issued Dunham & Associates five-year warrants exercisable for 600,000 shares of its common stock at a price per share of $2 for arranging the loan.
Headquartered in Houston, American Spectrum Realty is a real estate investment, management and leasing company that owns self-storage, office, retail and multi-family interests across the United States through an operating partnership. The company has been publicly traded since 2001.