Prudential Mortgage Capital Company provided $131.7 million in first mortgages to Lock Up/Evergreen Storage, LLC secured by a portfolio of 18 self-storage properties throughout the U.S. Prudential Mortgage Capital Company is the commercial mortgage lending business of Prudential Financial, Inc.
The properties, which are located in Chicago, Minneapolis, Florida, New Jersey, Hawaii and Massachusetts, include 13,422 units totaling 1,148,000 net rentable square feet. The majority of the properties are Class A, featuring modern construction and located in predominantly dense, high-income urban locations. The properties were built or converted to self-storage use between 1982-2009 and are collectively 86.5 percent occupied as of April, 2014.
“As the U.S. economy improves with many Americans choosing to rent instead of own, the fundamentals of the self-storage market continue to improve, especially for high-quality, proven assets in major markets,” said Frances Bo, a loan originator in Prudential Mortgage Capital Company’s San Francisco office who co-led the transaction.
The financing is comprised of a $20 million, seven-year, floating rate tranche, and a $111.7 million, 10-year, fixed rate tranche.
“The fixed and floating rate loan structure was tailored to the specific needs of the borrower and exemplifies Prudential Mortgage Capital Company’s ability to provide custom, flexible and cost effective financing solutions,” Bo said.
Frederick van Overbeek, a principal with Prudential Mortgage Capital Company’s San Francisco office added, “Prudential Mortgage Capital Company is very pleased to continue and expand our long-standing relationship with Lock Up/Evergreen.”
“This is now our third large portfolio transaction with the Prudential Mortgage Capital team,” stated Rick Hielscher, a partner with The Lock Up, “and we find they uniquely understand and appreciate our sector, our company and our specific assets. With this financing, we are thrilled to be strengthening our long relationship with one of the nations’ premier permanent lenders.”