American Street Capital arranged a $7.6 million bridge loan for a self-storage facility with 55,418-square-feet consisting of 885 traditional storage units and 490 wine storage units in Chicago, Illinois.
The transaction was completed in August and ASC exclusively represented the sponsors to secure the bridge loan for property. The building was built in 1920 and converted to a self-storage facility in 1984. the loan will provide necessary capital to modernize the facility and achieve maximum occupancy. There is limited availability of traditional self-storage in the area and sponsors predict a long-term upside with the anticipated delivery of over 8,000 units.
The loan secured features a two year term, 80 percent loan-tocost leverage, interest-only payments, and a non-recourse structure.
The loan was originated by Igor Zhizhin, the president of ASC.