AC Self Storage Solutions LLC of Newport Beach, Calif., acquired Storage Solutions of Corinth, a class-A self-storage facility in a Dallas suburb.
Acquisition debt financing of approximately 65 percent of the purchase price was secured from a major national commercial mortgage-backed securities (CMBS) lender. The non-recourse loan has a 30-year amortization with two years of interest-only payments.
It looks like the CMBS lenders are coming back strong, said Troy Downing, president of AC Self Storage Solutions LLC. Loan terms are getting very close to where they were before the resets in the commercial lending industry, and we were very happy to see a smooth, efficient closing that went from loan application to funding in 35 days.
The purchase price was not disclosed, but the buyer indicated the facility traded just below an 8 percent cap rate based on current, not pro forma, numbers. Paul Darden, owner, and Bill Conerly, district manager, of the Paul Darden Co. of Dallas represented the seller.
Storage Solutions of Corinth, 3701 FM 2181, has 767 self-storage units and 97,325 net rentable square feet. Its approximately 90 percent occupied with residential and commercial tenants. AC Self Storage Solutions, LLC plans on upgrading the local property management using its own property management company, Westport Properties. In addition, AC Self Storage Solutions plans on implementing a tenant-insurance program that was not offered by prior ownership.
The acquisition is the companys second in 90 days. In mid-April, it made an all-cash purchase of 470-unit Rivergate Self Storage, a class-A facility in Murfreesboro, Tenn., a suburb of Nashville.
AC Self Storage Solutions LLC is an owner/operator of self-storage commercial real estate. Its focused primarily on acquiring stable, cash-flowing, self-storage facilities mainly in the Sunbelt and select areas of the United States that exhibit strong local demographics needed for successful income-producing self storage operations. The company is a joint venture between Axxcess Capital Ventures and Specialized Storage Management Holding LLC. The team is made up of professionals from diverse backgrounds in self-storage, commercial real estate, asset management, investment banking, technology and finance.