The BSC Group recently arranged $15M in CMBS loan proceeds to refinance the maturing debt on a self-storage property located in Santa Monica, CA.
The new non-recourse loan featured a 10 year fixed interest rate in the low 4% range, with a 30 year amortization. In addition, the lender waived all structural replacement reserves.
The 50% LTV loan was competitively bid and ultimately placed with a CMBS lender that out bid many Life Insurance Companies, who were constrained by the high loan per square and low debt yield given the location and quality of the real estate
Surprisingly, at this low leverage point the CMBS market was able to match the interest rates offered by the Life Insurance Companies and provide structural terms that were more favorable to the borrower's cash flow objectives through the term of the loan
. The CMBS lender also offered 10 years of "Interest Only", which was not of interest to this client.
