$25M Loan Earmarked for Annapolis Self Storage Development
1784 Capital Holdings, a national self-storage developer and owner, has received $24.9 million in financing to develop Annapolis Self Storage, a 71,360-square-foot building in Annapolis, Md.
The property will consist of 751 climate-controlled self-storage rental units.
“When determining what deals to pursue, we primarily consider the strength of the sponsorship group and their ability to execute on the proposed business plan more so than the asset class or geographical location,” Mark Fogel, president & CEO of ACRES Capital, told Commercial Observer. “[The developer’s] deep knowledge of the self-storage space and well developed relationships with many of the large publicly traded self-storage REIT operators was a big part of what piqued ACRES’ interest in pursuing this opportunity.”
The sponsor’s business objective is to develop, construct, and operate Class A self-storage facilities in major markets with high barrier to entry across the United States, according to Fogel.
“Annapolis has some of the most attractive renter demographics of any submarket in the Baltimore metro area,” he said. “This project will provide the market a convenient, newly constructed self-storage facility that will compete at the top of its peer set.”
The property is in Annapolis along Old Mill Bottom Road, which serves as a frontage road to U.S. Highway 50, a retail thoroughfare.
“This high-volume corridor provides strong exposure and ease of access, all of which are highly desirable for self-storage facilities,” Fogel said. “Additionally, with mainly dated existing supply in the market area within a five-mile radius, and no future proposed self-storage developments in the pipeline, the development site is considered a strong market to build in.”
James Bracco of ACRES’ Miami office facilitated the loan.
Keith Loria can be reached at Kloria@commercialobserver.com.