HFF Lines Up Refinancing for Airport Road Storage in Monterey
- May 23, 2016
The firm worked on behalf of the borrower, 21st Century Storage, to place the 20-year, fixed-rate loan with Deutsche Bank. Loan proceeds were used to refinance an existing mortgage.
The property is located at 1118 Airport Way adjacent to Monterey Regional Airport in Monterey, a city in the heart of California’s Central Coast. Airport Road Storage is situated on a 36,444-square-foot site in the Monterey Peninsula Self Storage market. Ten percent higher than the national average, this market has an average occupancy rate of 95 percent. The three-story self-storage facility was 96 percent occupied at the time of closing and features individual door alarms for each of the 478 non-climate and two climate-controlled units, in addition to video monitoring and gated access.
The HFF debt placement team representing the borrower was led by Managing Director Michael Klein. The 21st Century Self Storage team was led by Clayton Gentry.
“The property is situated on a ground lease to the Monterey County Airport Authority that has only 31 years remaining,” Klein said in prepared remarks. “This presented a challenge for a lot of lenders, who required more term. As a result, HFF was engaged to secure a long-term, self-amortizing loan that would enable the borrower to put the loan to bed for 20 years and take interest risk out of the equation. Deutsche Bank really understood the market and property type and was able to get comfortable with the complicated ground lease structure. They performed flawlessly.”
Image courtesy of HFF