George Smith Partners announced recently that it successfully secured financing to develop a six-building self-storage facility near Stevenson Ranch.
The $21.7 million, non-recourse, construction-to-permanent loan from a life insurance company lender is set to allow the developer to construct a 966-unit, climate-controlled, Class A facility.
Prior to securing construction financing, horizontal work and entitlements were vetted to obtain certified pads by the end of 2019. Even so, COVID-19 has resulted in multiple delays from subcontractors and county inspectors to permitting, as the county’s offices have been closed and construction was halted.
GSP advisers, including Antonio Hachem, Wendy Wang and John Choi, were able to source an investor and settle on loan commitments with the same terms agreed upon prior to the pandemic before negotiating an agreement with Public Storage to operate the facility.
“I am thrilled to finance this project despite many capital sources putting a pause on new deals due to the COVID-19 downturn,” Hachem, principal at GSP, said via email. “Thanks primarily to our strong relationship with this lender, this new self-storage facility will be a valuable addition to the SCV community.”