TPG Angelo Gordon, Andover Properties Nab $315M Refi for Self-Storage Portfolio

A joint venture between TPG Angelo Gordon and Andover Properties has nabbed a $315 million loan to refinance a 43-property self-storage portfolio, Commercial Observer has learned.

Wells Fargo (WFC), Goldman Sachs and 3650 Capital provided the commercial mortgage backed securities (CMBS) loan on the sponsorship’s portfolio, which is spread across 24 U.S. markets and 11 states. 

Newmark (NMRK) arranged the transaction with a team led by Jordan Roeschlaub, Jonathan Firestone, Nick Scribani and John Caraviello.

“We were able to take advantage of a robust CMBS market and significantly reduce our annual debt service on this pool of assets,” a spokesman for Andover Properties said in a statement. “The strong investor interest in our bonds shows that self storage remains an in-demand asset class across both equity and debt investors.”

The portfolio consists of more than 21,300 units spanning 3.1 million square feet, all under Andover’s Storage King USA brand. Since TPG and Andover acquired the properties, the portfolio has experienced net operating income growth of over 40 percent, according to Newmark. 

Andover Properties, run by CEO Brian Cohen, is one of the largest private owners of self-storage assets in the country, with more than 160 properties spanning 14 million square feet. Cohen has partnered with Angelo Gordon, which was acquired by TPG last year, to buy self-storage assets since the mid-2000s. 

Officials at TPG Angelo Gordon, Wells Fargo and 3650 Capital did not immediately return requests for comment. Goldman Sachs declined to comment. 

Andrew Coen can be reached at acoen@commercialobserver.com