Property Type Storage
Financing Type CMBS
Date September 21, 2020
Palm Springs Airport Self-Storage is a unique facility in that it consists of a mixture of self-storage, climate-controlled storage, and wine storage units.
Gantry, the largest independent commercial mortgage banking firm in the U.S., secured a $7,000,000 CMBS loan for Palm Springs Airport Self-Storage in Palm Springs, CA. The 88,015-square-foot self-storage facility is located at 3950 Airport Center Drive and includes 608 units.
Gantry’s Andy Bratt represented the borrower, Palm Springs Self Storage, LLC, which originally developed the property in 2003. The 10-year full term interest only loan was arranged through Bank of America and was one of the first CMBS loans closed since the pandemic rattled the CMBS market.
Gantry’s Bratt said, “Capital markets have been faced with many challenges during the unprecedented times and this loan was no exception. We originally went under application pre-COVID with a closing date in sight, which abruptly changed and was placed on hold at the onset of the pandemic. Gantry, lender, and sponsor all stayed in close communication and patiently waited for the CMBS market to unfreeze. We were very fortunate to have a solid borrower that operated the property at its highest capacity throughout the pandemic as well as a great partner in BofA, which provided a full-term interest only loan within 10bps of the initial rate pre-COVID. We have been actively closing loans during the pandemic and have faced challenges head on to ensure we execute on our client’s behalf.”
Palm Springs Airport Self-Storage is a unique facility in that it consists of a mixture of self-storage, climate-controlled storage, and wine storage units. These property characteristics appeal to Palm Springs’ full-time residents, those in Southern California who own second homes in the desert resort community, along with the Snowbird population that flocks to the Coachella Valley every winter.
The property includes a two-story office and manager’s unit, which were recently remodeled over the past two years, as well as the 608 units in single-story buildings. The facility offers climate-controlled units as small as three feet by three feet, while its drive-up accessible spaces come as large as 10 feet by 30 feet.
The initial financing plan was to pay off the existing loan, pull cash out, and buyout the ground lease, which was under PSA with a deadline. Gantry quickly pivoted to arrange a private money loan to provide the funds to acquire the ground lease making the property fee simple. The CMBS loan paid off all financing and provided cash out to the sponsor.