Only one week left until 2025 KKR The company has already finalized a $185 million refinancing package for its domestic self-storage portfolio, according to research by Commercial Observer.
Blackstone Real Estate Debt Strategy 5-Year Bridge Loan Offered to KKR’s Self-Storage Investment Platform Alpha storage propertiessaid the official.
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CBRE‘s tom traynor, tom rag, mark finnan and Armand Samuk I sorted out my debt.
“The quality of these properties and the strength of our Alpha Storage Properties operating platform have enabled us to act proactively and take advantage of improving capital markets,” he said. ben brudneyManaging Director of KKR’s Real Estate Group. “This attractive financing package allows us to continue executing our business plan and gives us great flexibility to optimize the value of this portfolio. ”
The portfolio consists of 15 Class A self-storage facilities in markets including Charlotte, North Carolina, Phoenix and Winter Park, Florida, totaling 1.2 million square feet, according to Alpha’s website. That’s what it means. The specific locations of the assets could not be gleaned, but people familiar with the deal said they are densely populated, high-income areas where storage demand exceeds the national average.
Blackstone’s loan will be used to repay existing debt and will also give KKR additional time to finalize its business plan for the portfolio.
A Blackstone spokesperson told CO: “We are excited to offer this financing solution to our high-quality, well-located portfolio with the support of our strong sponsors.”
KKR Start Alpha Storage Properties Acquire and manage self-storage properties in high-growth markets and targeted infill locations across the U.S. in 2021
Due to the effects of the new coronavirus infection (COVID-19), people are often forced to move products to storage locations due to people being confined to limited areas, venturing out onto public roads, or adjusting their lifestyles. Demand for self-storage has skyrocketed. Although demand for self-storage has fallen from dizzying peak levels, it remains above pre-COVID-19 levels.
a CBRE Report for November Self-storage usage among U.S. households is now 10.2%, compared to 9.3% in 2019, and the average U.S. household now has 13.4 square feet of self-storage, up from 12.1 square feet before the pandemic. It is assumed that storage is being used.
“Our forecast is that more and more households will use self-storage, with penetration reaching close to 16 percent of households in 10 years,” the report said.
CBRE declined to comment.
Kathy Cunningham can be contacted at: [email protected].
