Cronheim Mortgage has secured a 75% LTC, five-year fixed-rate construction loan for the development of a 151,000+ NRSF, Class A self storage facility in El Paso, TX. The $12,950,000 financing was closed with a local bank and features a 30-month interest only period followed by a 20 year term. The Property will offer a mix of climate-controlled and non-climate-controlled units and is well-located in the growing market of east El Paso, proximate to new residential development.
The Sponsor, Verturo Interests, is a vertically integrated development and management company, and the founder of the “Just A Closet,” self storage brand. The Sponsor continues to grow the Just A Closet brand throughout south Texas, with Just A Closet El Paso slated to become their 12th self storage property under ownership and management.
David Poncia of Cronheim Mortgage noted: “Many lenders are underwriting and structuring deals, especially for development deals, more conservatively given the rising rate environment. As a result, we left no stone unturned to create a very unique financing solution, which offers both full leverage and a fixed rate for five years. This is a testament of our ability to source capital from the entire universe of lenders - both national and local.”