2004 Transactions
Tremont Structures $10,000,000
Financing for Self Storage
The
Hartford office of Tremont Realty Capital structured the
financing for the refinance of Nantucket Self Storage, an
845-unit facility located in Nantucket, MA.
Steve Henderson, a Senior Director with Tremont,
arranged the $10,000,000 loan, which was funded through
a national lender. The 10-year, non-recourse loan provided
for roughly an 80% loan-to-value with a 5.96% interest rate.
The property, which was built in 2003, is the largest self-storage
facility on the island. On the borrower's behalf, an earn-out
provision enabling the owner to maximize proceeds over an
extended period. According to Henderson, "Due to concerns
on where the interest rates are headed our client wanted
to put the financing to bed on this project. Since the asset
is so new, NOI hasn't really stabilized yet and traditional
term debt would have trapped a lot of equity. We were able
to negotiate a loan structure that achieved all of these
requirements."
For additional information on this transaction,
please contact:
Stephen Henderson
Senior Director
Email: shenderson@tremontcapital.com
Phone: 860.548.9289
