ValueXpress obtained a $4-million CMBS conduit loan to refinance a $3-million CMBS conduit loan that ValueXpress provided to the sponsor ten years ago. The property, Hastings Self-Storage, is located on the west side of Saw Mill River Road, just south of Farragut Avenue in the village of Hastings-on-Hudson, New York. The building, built in 2001, is a five-story, elevator- and climate-controlled self-storage facility containing 52,000 square feet of gross building area; the net rentable area is 35,515 square feet of storage space. There are 435 rentable units total that range in sizes from 4.5’ x 4.5’ to 10’ x 25’ bins. The transaction was structured with a 10-year term and a 25-year amortization schedule.
“The sponsor initially selected an insurance company to refinance the property, but the transaction was turned down,” commented Michael D. Sneden, Executive Vice President at ValueXpress. “This consumed precious time, and I was engaged three weeks before the existing CMBS loan matured. We went to work quickly and obtained a 15-day extension and closed the loan. Most important, we locked the rate in advance of a Fed report and secured an attractive rate.” The rate was substantially less than the prior coupon such that loan payments are nearly the same despite borrowing an additional $1 million.