Talonvest Arranges $62M in Financing for Self-Storage Developments

By Mihaela Coste

Climated Controlled Self-Storage Facility

Talonvest Capital Inc. negotiated a $37.8 million construction financing for The William Warren Group and a $24.1 million construction loan for Metro Self Storage. The loans are for seven self-storage developments in California, Arizona, Pennsylvania and Illinois.

The company negotiated the loans through four different banking institutions, reflective of the changing market environment.

The William Warren Group will use the $37.8 million for the development of approximately 310,000 square feet of climate controlled facilities on sites located in Los Angeles, San Diego and Orange County as well as in Scottsdale, Ariz. The loans were financed through three separate regional banks—headquartered in the Midwest, West and Northeastern U.S— all of them being structured with four-year terms on an interest-only basis with limited recourse and extension options. The Class A developments will benefit from a prime location with good drive-by traffic and excellent visibility.

Eric Snyder, Kim Leslie, Jim Davies, Tom Sherlock and Erich Pryor of Talonvest represented the borrower. “Talonvest’s capital market expertise and construction lending knowledge were instrumental in getting us a loan structure that worked,” said Tim Hobin, executive vice president of William Warren Group, in a prepared remark.

Metro Self Storage will use the three construction loans in the total amount of $24.1 million for the development of more than 236,000 square feet of self-storage facilities located in Chadds Ford, Pa., Naperville, Ill. and Addison, Ill. The loans for the Class A projects have four-year terms, limited recourse with burn down, heavily negotiated transfer provisions and on-going loan covenant provisions. A Midwestern bank financed the Pennsylvania development and an East Coast bank financed the two suburban Chicago properties.

The borrower was represented by Senior Relationship Manager Kim Leslie and principals Tom Sherlock and Jim Davies of Talonvest. “The construction lending market has changed significantly over the last year making Talonvest’s knowledge and relationships even more valuable for us,” said Matt Nagel, chairman of Metro Storage LLC, in a prepared statement.

Talonvest arranged in the first quarter of 2017 loans adding up to $36 million for various self-storage owners in the Los Angeles area, San Diego area, Dallas and Denver. William Warren Group benefited then from a $10.2 million construction loan for the development of a self-storage facility in the San Diego area.  

Image courtesy of Metro Self Storage