Thorofare Capital has funded a $25,500,000 floating rate commercial mortgage for recapitalization of Secured Climate Storage, a 1,201-unit self-storage facility located in Austin, Texas. Proceeds of the loan were utilized to consolidate two bank loans against separate phases of this multi-tiered development, then buy out an institutional preferred equity investor. The sponsor’s plan is to finish ramping up the occupancy of the final, third phase of this project and then sell the property to a REIT or other institutional private equity real estate company. The floating rate, non-recourse loan carries an initial term of two years, with two extension options.

The property is a ~90% climate controlled (~10% non-climate controlled) Class A self-storage facility located on a 14.69-acre site. The improvements were originally constructed in 2006 and expanded in 2012, 2015 and 2016. The final phase was recently delivered and it now contains 203,083 NRA in three four-story, and one three-story climate-controlled buildings, and 17 smaller, non-climate buildings designed for single boat and trailer storage. Secured Climate Storage also offers five uncovered Trailer spaces which are 100% occupied.

At the time of closing, the property benefited from an occupancy level of 72% based on number of unit and 66.5% based on rentable square foot, with continued room to stabilize as the sponsor ramps up occupancy and vacancy is absorbed. The management company also runs a privately operated postal center with FedEx, UPS, and DHL International within the facility. The business/leasing office personnel run the shipping center offering a full array of business and shipping office services that drive approximately 350-700 customers per week.

The sponsor is Austin-based Carpenter and Associates, Inc. is a third-generation local real estate corporation. The company focuses on state-wide development, construction and investment, brokerage , asset management and infrastructure development.