Talonvest Secures $45.4 Million In Storage Loans

Talonvest Capital, Inc. has announced the successful closing of a $20.4 million permanent loan on behalf of American Recess, a Reno-based self-storage developer and investor focused on high-quality facilities in high-barrier and growth markets. The long-term fixed-rate refinance loan was secured by a newly built Class-A facility in Santa Rosa, Calif. Situated on a 1.51-acre site, the facility took five years to entitle and approximately 18 months to build. It features a 90,938-net-rentable-square-foot, four-story building with 549 climate-controlled units and 394 non-climate-controlled units.

To achieve the borrower’s goal of reducing rate and mitigating rate risk by replacing their floating rate bridge loan with a permanent loan, Talonvest ran a comprehensive competition among various lender types on the recently stabilized asset. As a result, Talonvest successfully negotiated a five-year, non-recourse, interest-only CMBS loan with a leading money center bank. Through strategic structuring and proactive lender engagement, the Talonvest team improved the debt yield requirement from the best and final lender by 25 bps to maximize proceeds, reduced spread, and secured a 2% buydown, resulting in a 48-basis-point decrease in the final rate. 

“We’re proud to partner with Talonvest on this transaction. Their expertise and commitment throughout the entire process resulted in competitive financing that helped achieve our goals and positions us for long-term success,” said Reid Hamilton, Founder of American Recess. “Their prowess in navigating market complexities, timing, US Treasury volatility, and the lender’s closing process was imperative to the success of the overall outcome.”

Talonvest also secured a $25 million construction loan on behalf of 1784 Holdings, a national self-storage developer and owner. A U.S.-based commercial real estate lending and financial services firm provided funding for the development of an 81,769 NRSF Class-A self-storage property in Huntington Station, N.Y. The 48-month loan featured a floating interest rate, interest-only payments, a one-year extension option, and prepayment flexibility.

The Talonvest team responsible for these assignments included David DiRienzo, Thomas Sherlock, Kim Bishop, Mason Brusseau, Ivan Viramontes, and Lauren Maehler.

About Talonvest Capital Inc.

Talonvest Capital is a commercial real estate advisory firm specializing in sourcing cutting-edge lending programs and advising on capital market trends for industrial, self-storage, multifamily, office, and retail property owners. Talonvest Capital offers a unique boutique approach by leveraging the company’s collective institutional knowledge and remaining highly engaged throughout the entire assignment, including the closing process, to deliver tailored capital solutions for their clients. Learn more at https://talonvest.com.