New Britain, CT Cronheim Mortgage has secured a $5.4 million initial permanent funding for a self-storage facility, which was recently renovated. There is an additional construction credit facility of $700,000 available for building 59 outdoor storage units upon receiving final municipal approvals.
The debt was provided by a regional Connecticut bank. A fixed rate of 4.35% was locked on the initial tranche with one-year of interest only converting to a 25-year amortization schedule thereafter. When construction funds are drawn there will be I/O for 24-months at the same fixed rate and upon completion of construction that portion of the loan will convert to an amortizing loan as well.
Currently the self-storage facility has 993 interior climate-controlled units and is situated on a 7.63-acre site. The facility is operated by CubeSmart.
The client, Dealpoint Merrill, is a national self-storage developer. The company and its construction and development affiliates are managed by a long-term seasoned cohesive team of real estate and investment professionals, with expertise in deal structure, finance, acquisition and management.