Prime Group Eyes $505M Refi Loan for Self-Storage Portfolio

Prime Group Holdings is about to snag a hefty $505 million commercial mortgage loan tied to a 32-property self-storage portfolio and two mixed-use assets spread across 14 states and one U.S. territory, according to Fitch Ratings. As part of the same transaction, the company will also receive a $70 million mezzanine loan.

Citi Real Estate Funding Inc. and Goldman Sachs Bank USA are behind the five-year, fixed-rate note, with the deal slated to close Oct. 17. The financing will wipe out an existing $482.4 million debt, cover approximately $14.2 million in closing costs, and send $78.4 million in equity back to Prime Group. Wilmington Savings Fund Society will act as trustee, while Citibank will handle certificate administration.

Among the portfolio’s assets, five properties sit in Massachusetts, seven in North Carolina, and two in Florida. All are positioned in densely populated infill markets.

This move follows closely on the heels of Prime Group’s $156 million refinancing of a three-property self-storage portfolio in New York City, a collection totaling more than 7,200 units across three boroughs.