AC Self Storage Solutions closed this transaction nearly a month ahead of schedule
Corinth, TX (PRWEB) July 19, 2011
AC Self Storage Solutions, LLC of Newport Beach, CA., has acquired Storage Solutions of Corinth, a Class-A, stabilized, cash-flowing facility with 767 self storage units and 97,325 net rentable square feet in this Dallas suburb.
The transaction closed 61 days from receipt of due diligence materials from the seller and nearly a month before the contracted closing date. Acquisition debt financing of approximately 65% of the purchase price was secured from a major national commercial mortgage backed securities lender and the mortgage went from loan application to closing in 35 days, said Troy Downing, president of AC Self Storage Solutions, LLC.
Purchase price was not disclosed but the buyer has indicated the facility traded just below an 8% cap rate based on current, not pro forma, numbers.
Storage Solutions of Corinth, located at 3701 FM 2181, 12 miles from the Dallas Metroplex, is approximately 90% physically occupied with both individual household tenants and commercial customers. AC Self Storage Solutions, a joint venture of Axxcess Capital Ventures, LLC, of Newport Beach, CA., bought the facility from a private owner. Paul Darden, owner and Bill Conerly, district manager of the Paul Darden Co. of Dallas, represented the seller.
“AC Self Storage fast-tracked the entire transaction which went very smoothly and was completed ahead of deadline,” said Conerly. “The buyer performed in all aspects of the acquisition and we look forward to working with them on future deals.”
General terms of the loan:
· Sub 5.5% interest rate
· 10-year term
· 30-year amortization
· 2 years of interest-only payments
This deal is AC Self Storage Solutions second acquisition in 90 days. In mid-April, it made an all-cash purchase of 470-unit Rivergate Self Storage, a Class A, stabilized, cash-flowing facility in Murfreesboro, TN., a suburb of Nashville. That transaction was also closed in 60 days.
Buyer Won Price Concession for Quick Closing
“It looks like the CMBS lenders are coming back strong,” said Downing. “Loan terms are getting very close to where they were at 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.”
“Both buyer and seller were happy to close ahead of schedule,” said Craig Morris, vice president of AC Self Storage Solutions. “As the buyer, we received a price concession for the quick closure.”
New Benefits for Storage Customers
AC Self Storage Solutions, LLC plans on upgrading the local property management using their self storage property managers, Westport Properties of Newport Beach, CA. Westport Properties has transferred strong, experienced local managers to Corinth to manage this property with oversight of Westport’s District Manager system and AC Self Storage Solutions infrastructure. In addition, AC Self Storage Solutions plans on implementing a tenant insurance program that was not offered by prior ownership.
About AC Self Storage Solutions, LLC
AC Self Storage Solutions, LLC of Newport Beach, CA. is an owner/operator of self storage commercial real estate. It is focused primarily on acquiring stable, cash flowing, self storage facilities mainly in the Sunbelt and select areas of the U.S. that exhibit strong local demographics needed for successful income-producing self storage operations. AC Self Storage Solutions is a joint venture between Axxcess Capital Ventures of Newport Beach, CA and Specialized Storage Management Holdings, LLC. The team is made up of professionals from diverse backgrounds in self storage, commercial real estate, asset management, investment banking, technology and finance.