ValueXpress has arranged a $6-million CMBS conduit loan for the refinance of a 66,800-square-foot (sf) self-storage facility located in the Castleton section of Indianapolis, Indiana. The property was purchased by sponsor Jim Sapp in December 2009. At acquisition, the property contained 33,600 sf in four buildings that was a former lumberyard with lean-to open structures. The buildings were enclosed and configured into 200 sf to 3,000 sf storage spaces. Subsequently, the sponsor constructed five additional buildings, each preleased. The property is currently 100% occupied.
The property is unique as it caters to the small business storage segment of the market. The smallest units are 10 ft × 20 ft (200 sf) with a mix of units up to 1,000 sf or more. The property provides amenities desired by small business tenants, including electric for tool charging, community restrooms, parking/circulation and small office suites with a community conference room.
The ten-year loan provided significant cash equity return to the sponsor that will be utilized as equity to obtain construction loans to build additional facilities.
“The transaction was completed through our Fixed-Fee CMBS program,” commented Michael Sneden, Executive Vice President of ValueXpress. “Usually the transaction costs for third-party reports and lender legal charges are too expensive for small balance CMBS loans, but our program fixes those costs at $25,000, saving $10,000-$25,000 over typical CMBS loan programs.”
The Fixed-Fee CMBS program is available for all typical CMBS conduit loan assets in loan amounts of $2 million to $12 million. To obtain a no-obligation loan quote on your next CMBS transaction through our Fixed-Fee program, contact a member of the ValueXpress team: Mike Sneden (firstname.lastname@example.org), Dennis Suh (email@example.com) or Gary Unkel (firstname.lastname@example.org).