Development and real estate firm InSite Property Group, which operates the SecureSpace Self Storage brand, has received $140 million in construction financing to expand its development pipeline. The company has 40 projects planned nationwide that comprise about 5 million square feet. The floating-rate loan from ACORE Capital LP also gives InSite the flexibility to expand the credit line to as much as $215 million, according to a press release.
“The self-storage asset class has seen significant demand from institutional capital investors, as it has been one of the strongest performing asset classes through the COVID-19 pandemic,” said Bill Fishel, senior managing director with the Markets Debt Placement team of JLL Capital Markets, which arranged the loan. Other JLL team members that helped secure the financing were analyst Chad Morgan from the markets-debt group, senior director Griffin Guthneck, and managing directors Steve Mellon and Brian Somoza from the national self-storage group.
“We appreciate the creativity of both the JLL and ACORE teams in helping us structure a truly unique facility, which will provide us the flexibility to execute on our development pipeline,” said Chip Brown, chief financial officer for InSite.
Based in Redondo Beach, Calif., InSite is an integrated developer, builder and operator of commercial real estate. SecureSpace operates 12 self-storage facilities in six states.
ACORE is a commercial real estate finance company and debt-fund manager with approximately $17 billion of assets under management. It specializes in originating, acquiring and managing first mortgages, B-notes, mezzanine debt and preferred equity throughout the United States.
JLL is a global provider of capital solutions for real estate investors and occupiers. The firm has more than 3,700 capital-markets specialists in about 50 countries. It has operations in more than 80 countries and a global workforce of more than 91,000.
JLL Capital Markets, InSite Property Group Scores $140M Construction Facility for National Self-Storage Development Pipeline