|
U-haul
Self-Storage Portfolio
Transaction Overview
Transaction type: Private placement
/ Financing
Total Transaction Size: $86 Million
Transaction Background
A senior officer of the U-Haul organization
turned to CBA and long time business associate Stanley Cheslock to refinance
the company's self-storage portfolio in order to buy out certain family
shareholders.
Transaction Summary
Within 7 days of being introduced
to the portfolio, CBA structured and funded $86,000,000 in first mortgage
financing secured by 79 U-Haul Self-Storage properties located in 23 states
and Ontario, Canada. CBA's understanding of the synergy between U-Haul's
truck rental and self-storage operations resulted in the borrower receiving
more loan proceeds and a lower cost of funds than was offered by competing
lenders.
CBA's willingness to
underwrite U-Haul's Canadian properties using the same criteria as used
for their U.S. assets, enabled the borrower to generate the maximum loan
proceeds available from their self-storage portfolio. The refinancing
satisfied the borrower's loan proceeds requirement and was completed at
a cost to the borrower significantly below prevailing market rates.
|