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20 Mar 2019

Talonvest Negotiates $23.7 Million Construction Loan


Talonvest Capital, Inc., a boutique self storage and commercial real estate mortgage brokerage firm, negotiated $23.7 million of construction financing on behalf of Leon Capital Group for two storage developments in the Pacific Northwest.

The institutional quality self storage facilities will be built in Portland, Oregon. Both developments are easily accessible via heavily traveled roads with traffic counts in excess of 25,000 vehicles per day. The development on SE Division Street in Portland will have approximately 113,155 net rentable square feet on a 1.72 acre site. The approximate 102,692 net rentable square feet development site on SE Powell Boulevard in Portland is located on 1.57 acres. The two acre back portion of the site was recently sold to Renaissance Homes, a builder of luxury homes.

The two developments have separate, uncrossed loans featuring limited recourse and 42 month loan terms with interest only payments and an 18-month extension option. The loans were negotiated and closed with one of the 50 largest banks in the United States.

“Talonvest secured our last construction portfolio loan and they delivered once again. They’re a valuable leverage point for our team and drive better pricing, terms, and structure through competition and negotiation.”

Jake Walker, chief operating officer, Leon Capital Group

Leon Capital Group offers high-leverage, non-recourse financing, with a guaranteed exit once a property is complete. They invest their own capital and have significant experience in the self storage industry.

The company's loan requirements for location include population of 75,000 in a three-mile radius, market rents of at least $1.50 per square foot per month, and excess storage demand in immediate trade area of a facility. Facility requirements include Class A, climate-controlled construction, at least 60,000 net rentable square feet, and multi-story with elevator access.

While Portland's metropolitan area is still absorbing new self storage supply, its population has been growing over 30,000 people a year. Portland's unemployment rate of 2.5 percent remains under the national average of 3.8 percent as of February 2019.

Talonvest Capital is a boutique real estate firm providing advisory services to self storage and commercial real estate investors, owners and developers nationally. The principals of the firm have over 80 years of combined experience structuring loans and equity investments for office, industrial, retail, and apartment properties throughout the United States. In addition, they have established a dominant niche position in financing self storage properties across the country.

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