Investment-management firm Twain Financial Partners LLC has entered the self-storage industry behind three ground-lease capital transactions in partnership with developer Mequity Cos. and privately held financier Stonebriar Commercial Finance LLC. Under the agreement, Twain contributed $23.5 million and Stonebriar $15.5 million toward Mequity ground-up construction projects in Framingham, Mass.; Port Jefferson, N.Y.; and Port St. Lucie, Fla., according to a press release.
A ground lease allows the property owner to finance development projects or reposition assets by entering sale and leaseback agreements with repurchase options. The deal structure enables it to receive a lump-sum payment for a portion of the property value as well as current or future improvements. The owner also retains ownership and operational rights while making ground-lease payments to Twain, the release stated.
“Ground-lease capital is an excellent cost-effective option for Mequity as part of the capital stack in our self-storage development projects,” said Bill Marsh, CEO of Mequity. “Twain has been great to work with in providing this capital and has become a valued programmatic partner for Mequity.”
“Only a year after launching, we have found our ground-lease capital program to be a great fit for self-storage developers,” said Jon Kelly, business development officer for Twain. “Through our successful partnership with Mequity and Stonebriar, we hope to spread the word and do many more projects in this asset class.”
Based in St. Louis, Twain has more than $4 billion in assets under management within the public-private partnership sector. The firm works with several investment types but specializes in tax credit, structured debt and real estate transactions. It works closely with financial institutions and corporations to structure and manage investments.
Atlanta-based Mequity is an investment firm focused on self-storage development and operation. Its primary markets include the Atlanta, Boston, Miami, New York and Philadelphia metropolitan areas as well as Northern New Jersey. Its strategy is to develop self-storage in undersupplied submarkets nationwide.
Founded in 2015 and based in Plano, Texas, Stonebriar offers financing solutions to several business types in Canada, the United States and select foreign jurisdictions, with a goal of building a multi-billion platform of commercial loans and leases.
PR Newswire, Twain Financial Partners Delivers Ground Lease Capital to Self-Storage Development