El Paso, TX Cronheim Mortgage has secured a 75% LTC, five-year fixed-rate construction loan for the development of a 151,000+ net rentable s/f, Class A self storage facility. The $12.95 million 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 said, “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.”
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