HS-Reliant Storage Portfolio

The Sponsor is seeking non-recourse, fixed or floating rate loan proposals of approximately $120,000,000 ($140 PSF) for a term of three years. This request offers a lender the opportunity to finance a geographically diverse self storage portfolio of significant scale in fast growing markets such as Atlanta, Greenville, Savannah-Hilton Head, Denver, & Colorado Springs. The Properties are located in dense and affluent markets with an average population of 126,966 and household income of $147,428 in a 5-mile radius. The Sponsor is executing on their business plan and working to achieve physical stabilization. The Portfolio is currently 64.8% occupied; however, six of the properties recently completed expansions. The Portfolio would be 77.3% occupied if the recently complete square footage is removed. Once the Portfolio physically stabilizes, the Sponsor plans to enact an aggressive ECRI revenue management program to drive economic stabilization. The Sponsor expects to move the Portfolio’s current achieved rate from $0.98 PSF (approximately 33% below market) to a stabilized achieved rate of $1.64. The Sponsor is seeking first mortgage debt in the amount of $120,000,000 ($140 PSF, 68.0% LTC) to refinance maturing acquisition / construction loans and allow the Portfolio time to achieve stabilization.. Based on a stabilized NOI of $11,695,732, the requested proceeds will generate a 9.75% debt yield and 1.28x Amortizing DSCR. Additionally, assuming a conservative 5.75% cap rate, the loan represents a 59.0% loan to stabilized value.