Mag Mile Capital has completed a $7 million, non-recourse loan for an 87,000-square-foot, 997-unit self-storage facility in Cicero, Illinois. Located at 1331 S. 55th Court, the 36-month interest-only loan was closed at 4 percent over LIBOR with a 1 percent floor and allows an option for extension.
“The deal was a week or so from closing when the COVID-19 pandemic became a huge concern in the United States,” said vice president Prabhat Jayara who, along with the help of Heather Madsen and the entire team at Mag Mile team, facilitated the deal. “The original lender for this deal temporarily ceased all new originations, but our team was able to successfully pivot. And despite the asset’s slower than projected unit leasings, we secured a refinance at 5 percent and were able to rebalance reserves to support the property through stabilization, provide funds for capital improvements.”
The family-owned self-storage facility was recently rebranded as an Extra Space facility and will undergo improvements to include a new revenue-generating commercial parking area. Mag Mile Capital was also able to remove the borrower’s personal guarantee associated with the existing debt as well as return some cash equity.
“Prabhat and the entire team at Mag Mile were terrific partners to us,” said John Dugan, principal for the self-storage entity, JD3 Property. “They were always doggedly on our side through the twists and turns of commercial underwriting and always willing to put in the work and go the extra mile to make sure we got the best terms available, and most importantly got the loan closed.”