What's Happening?
Marcus & Millichap Capital Corp. (MMCC) has successfully arranged a $14 million refinancing loan for a self-storage facility located in Cape Coral, Florida. The facility, operated by CubeSmart, comprises 1,016 units and spans 137,900 square feet, offering
climate-controlled units and moving supplies. The loan was arranged by Doug Brooks of MMCC through a local bank for Island Estate Group, a real estate investment company active in several states including Florida, New York, Georgia, and South Carolina. The loan features a five-year term with a 25-year amortization schedule, a 60 percent loan-to-value ratio, and 18 months of interest-only payments.
Why It's Important?
The refinancing of the CubeSmart facility in Cape Coral highlights the ongoing demand and investment in self-storage properties, particularly in growing regions like Florida. This financial arrangement allows Island Estate Group to optimize its capital structure and potentially expand its operations. The terms of the loan, including the interest-only period, provide the borrower with financial flexibility, which is crucial in managing real estate assets. This move reflects broader trends in the real estate market where investors seek stable returns from self-storage facilities, which have proven resilient even during economic fluctuations.
