Greystone has provided its first CMBS loan in the self-storage space: a $26.25m loan for the acquisition of 23 facilities in Ohio and Kentucky.
The 10-year CMBS acquisition loan includes a 9% debt yield, a spread of 205 bps over 10-year swaps and three years of interest-only payments followed by a 30-year amortization schedule.
The loan-to-value is 75% based on the $35m the borrower, Elite Stor Capital Partners, paid for the properties. Six of facilities are located in Ohio and 17 in Kentucky.
“We are continually looking to expand our reach into additional asset classes, and are excited to have closed our first deal in the self-storage space,” said Rob Russell, head of production for Greystone’s CMBS team. “The appetite for CMBS is ripe for a number of asset classes, so we will likely be seeing an increase in this type of loan execution throughout the year.”
The acquisition was Elite Stor’s largest in the self-storage space. The firm has increased its portfolio investments from five to 35 properties in the last year. Elite Stor plans to upgrade the facilities with new technology and put new management in place.
The loan was originated by Greg Krafcik, a managing director at Greystone.