CHICAGO--(BUSINESS WIRE)--Prudential Mortgage Capital Company provided $131.7 million in first mortgages to Lock Up/Evergreen Storage, LLC secured by a portfolio of 18 self-storage properties throughout the U.S., the company announced today. Prudential Mortgage Capital Company is the commercial mortgage lending business of Prudential Financial, Inc. (NYSE:PRU)
The properties, which are located in Chicago, Minneapolis, Florida, New Jersey, Hawaii and Massachusetts, include 13,422 units totaling 1,148,000 net rentable square feet. The majority of the properties are Class A, featuring modern construction and located in predominantly dense, high-income urban locations. The properties were built or converted to self-storage use between 1982-2009 and are collectively 86.5 percent occupied as of April, 2014.
“As the U.S. economy improves with many Americans choosing to rent instead of own, the fundamentals of the self-storage market continue to improve, especially for high-quality, proven assets in major markets,” said Frances Bo, a loan originator in Prudential Mortgage Capital Company’s San Francisco office who co-led the transaction.
The financing is comprised of a $20 million, seven-year, floating rate tranche, and a $111.7 million, 10-year, fixed rate tranche.
“The fixed and floating rate loan structure was tailored to the specific needs of the borrower and exemplifies Prudential Mortgage Capital Company’s ability to provide custom, flexible and cost effective financing solutions,” Bo said.
Frederick van Overbeek, a principal with Prudential Mortgage Capital Company’s San Francisco office added, “Prudential Mortgage Capital Company is very pleased to continue and expand our long-standing relationship with Lock Up/Evergreen.”
“This is now our third large portfolio transaction with the Prudential Mortgage Capital team,” stated Rick Hielscher, a partner with The Lock Up, “and we find they uniquely understand and appreciate our sector, our company and our specific assets. With this financing, we are thrilled to be strengthening our long relationship with one of the nations’ premier permanent lenders.”
Prudential Mortgage Capital Company is a national full-service, commercial and multifamily mortgage finance business with more than $79 billion in assets under management and administration as of March 31, 2014. Leveraging a 135-year history of real estate finance, the company offers one of the most comprehensive lines of real estate finance products and originates loans for Fannie Mae DUS®, Freddie Mac Program Plus® and specialized affordable housing programs; FHA; Conduit; Prudential’s general account and proprietary balance sheet program; and other institutional investors. The company maintains a loan servicing portfolio of approximately $76.7 billion, as of March 31, 2014. For more information, please visit http://www.prumortgagecapital.com.
Prudential Financial, Inc. (NYSE:PRU), a financial services leader with more than $1.1 trillion of assets under management as of March 31, 2014, has operations in the United States, Asia, Europe, and Latin America. Prudential’s diverse and talented employees are committed to helping individual and institutional customers grow and protect their wealth through a variety of products and services, including life insurance, annuities, retirement-related services, mutual funds and investment management. In the U.S., Prudential’s iconic Rock symbol has stood for strength, stability, expertise and innovation for more than a century. For more information, please visit www.news.prudential.com.