Citi, JPMorgan, Goldman Sachs Lend $468 Million For Self-Storage Portfolio

According to analysis from Kroll Bond Rating Agency (KBRA), a joint venture between Singapore sovereign wealth fund GICCenterbridge Partners and self-storage real estate firm Merit Hill Capital has secured $468 million in first-mortgage debt from a trio of bank lenders to acquire a portfolio of 57 self-storage facilities.

CitiJPMorgan Chase and Goldman Sachs came together to originate the two-year commercial mortgage-backed securities (CMBS) loan, which includes three one-year extension options that are contingent on the borrowers not defaulting on the loan.

The single-borrower CMBS funding also covers interest-only payments, which will pay investors at a rate of one-month LIBOR plus a spread of 1.85%, per KBRA. The deal involves a zero percent LIBOR floor.

Citi contributed around half of the loan amount, while JPMorgan Chase and Goldman Sachs each tackled a quarter of it. The loan is in line to be securitized in the MHP 2021-STOR CMBS deal.

The properties themselves were built between 1960 and 2014, and the portfolio comprises approximately 4 million Sq Ft. The assets are situated in, or around, 23 metro areas across more than a dozen states, with New Jersey, Virginia, Maine and South Carolina being the states with the most exposure to the portfolio.

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