1784 Holdings Secures $53M Construction Loan for Self-Storage in Bethesda
By Keith Loria January 26, 2024 1:26 pm
reprints
1784 Holdings has secured a $53 million construction loan for a new self-storage facility in Bethesda, Md.
The 200,000-square-foot self-storage property will come online in the fourth quarter of 2025 at 5204 River Road. The building will feature four stories below ground and five stories above, comprising 1,707 climate-controlled self-storage units.
Talonvest Capital, a self-storage and commercial real estate advisory firm, facilitated the funding, which is being provided by the Atlanta-based Ardent Companies, according to property records.
The construction loan consisted of a 28-month term with two extension options, full-term interest-only payments, an earnout funding upon receipt of the full certificate of occupancy, and no lease-up covenants.
Additionally, Talonvest negotiated a springing rate cap, allowing the borrower to forgo the costs of a purchase at closing.
“We have a long-standing relationship with Talonvest, and their commitment to consistently deliver results across numerous deals is a cornerstone of our collaborative success,” Shane Albers, chairman and CEO of 1784 Holdings, said in a prepared statement. “They serve as expert advisers, and we deeply value the team’s insights and vast network of capital providers.”
The Scottsdale-based 1784 Holdings, formerly known as 1784 Capital Holdings, has a portfolio of self-storage properties in more than 10 states. A second Maryland site is under construction in Annapolis, at 94 Old Mill Bottom Road, and is scheduled to be completed later this year.
The Bethesda site benefits from high visibility and easy access in an affluent community adjacent to Washington, D.C., with only three competitive storage facilities within two miles, according to Talonvest.
1784 Holdings was represented by Talonvest’s Kim Bishop, Jim Davies, Ivan Viramontes, Tom Sherlock and Lauren Maehler in the deal.
Ardent Companies did not immediately respond to a request for comment.
Keith Loria can be reached at Kloria@commercialobserver.com.
