Buchanan Storage Capital joined forces with the Real Estate Mortgage Capital Division of RBC Capital Markets to provide commercial mortgage-backed securities (CMBS) for the self-storage industry. RBC will finance storage properties through Buchanan and, in exchange, it will get first right of refusal on all of Buchanan's CMBS storage loans.
During the first 60 days of operation, the partnership has quoted and secured more than $50 million in self-storage financing, and recently closed its first two loans, totaling $13 million.
The new venture, called Buchanan Fixed Rate Direct, was developed with the aim of providing self-storage owners with high-quality customer service, direct access to decision-makers and faster closings. Though the venture is new, both companies are well-versed in CMBS financing, and BSC will continue to provide its range of lending options.
While the program is an important keystone for Buchanan, the company still plans to continue working with other banks and financial institutions for self-storage properties in need of balance sheet or lending other than CMBS, said BSC Principals Jim Davies and Eric Snyder.
The RBC mortgage-capital division sources and securitizes commercial real estate loans on a variety of income-producing properties. Formed in 2006, the business is expected to close more than $1.5 billion of CMBS loans in its first year.
BSC provides capital to self-storage owners nationwide. Its parent company, Buchanan Street Partners, is a national real estate investment bank that provides capital and advisory services for owners and developers, and investment management for institutional and high-net-worth investors. For more info, call 800.675.1902; visit www.buchananstoragecapital.com.