$315 Million Self-Storage Refinancing: A Sign of Resurgence in the CMBS Market
Newmark announced today that it has arranged a $315 million loan on behalf of TPG for the refinancing of a 43-property self-storage portfolio spanning 11 states.
The portfolio comprises over 21,300 units across 3.1 million rent-able square feet, located in 24 diverse markets. This transaction has garnered significant attention within the capital markets over the past two weeks.
Notably, $275 million of the loan will be securitized through a single-borrower CMBS transaction. The loan is structured as a two-year, floating-rate, interest-only commercial mortgage loan with three one-year extension options.
While CMBS financing for self-storage portfolios is not uncommon, this transaction signifies renewed interest in this asset class. Notable past examples include Prime Group Holdings' $93 million CMBS refinance in August 2020 and Merit Hill Capital's $615 million CMBS loan secured in January 2022.
We will continue to monitor financing trends in the self-storage sector, a key area of growth and opportunity. For further insights and analysis, subscribe to our newsletter or contact us at info@frescoanalytics.com.