07 Jul 2020
The BSC Group, a Chicago based self storage and commercial real estate financing advisor, has closed a $31MM CMBS loan for the acquisition of an 8 property self storage portfolio located in Memphis, TN. The portfolio is comprised of roughly 3,500 units and totaling 490,000 square feet of net rentable self storage. The 10-year non-recourse debt package featured 2 years of interest-only loan payments and was aggressively underwritten to a 75% loan to cost ratio.
Gelt, Inc., a Los Angeles-based real estate investment and asset management firm, engaged The BSC Group to discipline the market and arrange the acquisition financing package.
BSC Group Principal Devin Huber commented, “The greatest challenge facing this transaction was timing given the unexpected pandemic and subsequent lending market volatility that ensued. The sponsor has a very strong track record and the subject portfolio performed well through the pandemic, allowing The BSC Group to leverage its lending relationships to secure a market leading debt package.”
Kartikeya Kejriwal (“KK”) who directed the sponsor group stated, “Going into this transaction nobody could have possibly anticipated the pandemic, let alone the resulting shock to the global economy and capital markets. The BSC Group worked tirelessly on our behalf to retool as needed, and ultimately delivered a loan package that exceeded our expectations given the current market volatility. Their deep lender relationships and acute knowledge of the self storage industry were instrumental in getting this transaction over the finish line.”
The BSC Group continues to close loans through the pandemic and is extremely active in the self storage sector, having arranged more than $150MM in financing for the product type YTD 2020.
The BSC Group, LLC (http://thebscgroup.com) was formed in 2009 and provides mortgage brokerage, financial consulting, and loan workout solutions to commercial real estate property owners. Utilizing market expertise and a robust capital source network, the firm arranges debt and equity financing for commercial real estate investments nationwide, with a special emphasis on the self-storage asset class.
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