AFC arranges debt and equity deal for Bronx storage facility.
AFC Realty secured a total of $34 million in financing for the two assets through a Wall Street investment bank and a NY-based pension fund advisor. Paul Fried, principal of AFC Realty, made the announcement. A specialist in arranging financing for self-storage facilities around the country, AFC Realty, procured debt and equity providers that would make available the capital necessary for the owner to aggressively acquire sites and grow its storage business.
AFC Realty secured fixed-rate financing consisting of 80% loan-to-cost senior debt for the two properties. In addition, the financing provided reserves and working capital for the "lease up" of the larger of the two assets, Zerega Self Storage, a newly-built, 100,000-square-foot facility located in the intersection of the Cross-Bronx and Bruckner Expressways. The second property, situated on Third Avenue in the Bronx, was acquired with the same debt financing and joint venture equity partnership.
"Our main challenge was securing aggressive financing for the newly-constructed Zerega Self Storage," said Fried. "The asset presented some lease-up risks, but its central location, within a high traffic corridor, and institutional-quality construction provided the foundation for attracting institutional capital."
In addition to Zerega Self Storage, the AFC Realty financing package included a $6.5 million acquisition loan for the smaller facility located at 4268 Third Avenue in the Bronx.
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|Comment:||AFC arranges debt and equity deal for Bronx storage facility.(FINANCE)|
|Publication:||Real Estate Weekly|
|Date:||Apr 18, 2007|
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