Florida-based self-storage operator iStorage has secured a $50 million revolving line of credit as part of a total debt recapitalization. The company will use the money to replace existing loans, for general working capital and to fund future expansion, according to a press release issued by The BSC Group, a financing adviser specializing in self-storage, which negotiated the deal. The transaction includes a portfolio of 19 self-storage properties in seven states.
“The combination of low interest rates and tremendous liquidity in the debt market make it an optimal time to help our clients find ways to lower their cost of funds,” said Shawn Hill, a principal with BSC. “A revolving facility also streamlines the borrowing process by creating greater flexibility and speed of execution.”
The three-year loan was funded by an unidentified national bank and features a variable rate of 2.25 percent above LIBOR, with no amortization requirements and open prepayment, according to the release.
“The BSC Group negotiated an ideal structure to replace an existing, inflexible credit line we had with Bank of America. It is rare to find a large bank that truly understands your business needs, willing to structure a credit facility with maximum flexibility and great pricing in order to provide a catalyst for growth,” said Chris Harris, president of iStorage. “The BSC Group clearly understood our objective and identified the correct lender to make it a reality, and we could not be more pleased with the outcome.”
Formed in 2009, BSC provides financial and loan advisory, mortgage brokerage, and loan-workout solutions to commercial real estate owners and investors, with a special emphasis on the self-storage market. Through its capital source network, the company provides access to debt and equity financing for commercial real estate investments nationwide.
iStorage operates 60 self-storage facilities throughout Alabama, Arizona, California, Florida, Georgia, Nevada, New Jersey, Ohio, Pennsylvania and Virginia.
