Citigroup has closed a $560 million refinance for a 43-property self-storage portfolio owned by Prime Storage Group, sources familiar with the deal told Commercial Observer.
The floating-rate loan is indexed to SOFR. A source said the ultimate execution for the loan is still being mulled, given the current volatile interest rate environment.
Meridian Capital Group’s Drew Anderman, Eddie Haber and Benjamin Nevid arranged the financing.
Meridian officials declined to confirm the identity of the sponsor or lender, but said the 2.9 million-square-foot portfolio spans 15 states and the properties boast more than 90 percent occupancy. Officials also said that the borrower believes that the net operating income will continue to increase by bringing rates up to market.
“After thoughtful analysis, our team at Meridian was able to identify a path to strong value creation for our client by including 43 properties across 15 states in the collateral, achieving an ideal risk-adjusted opportunity for lenders,” Anderman said. “Reflective of lender interest, the term sheet was signed at the end of December 2021 and closed in two months’ time.”