Mag Mile Capital Provides $4M Construction-to-Mini-Permanent Loan For Self Storage In Memphis, TN

A construction-to-mini-permanent loan has been secured for a self-storage property located at 1200 Southland Mall in Memphis, TN. The property spans 83,040 square feet and consists of 854 units. The loan was provided by Mag Mile Capital, with Matt Weilgus representing the lender. The landlord of the property is Global Storage Partners.

Summary of transation details

• Property Type: Self Storage
• Transaction Amount: $4,000,000
• Loan Terms: Construction-to-mini-permanent loan structure. Floating rate of WSJ Prime + 1%, 5-year term, 3 years of I/O followed by 30-year amortization schedule for 2 years, 48.2% loan-to-cost, 0.5% lender origination fee, 0.5% lender exit fee, no prepayment penalty, full recourse guaranty at closing, but burn-off of recourse to 50% once the property demonstrates a DSCR of 1.4x for 6 months.

Matt Weilgus of Mag Mile Capital served as the representative for the lender in this transaction. The loan agreement includes a construction-to-mini-permanent structure with a floating interest rate based on the WSJ Prime rate plus 1%. The loan has a 5-year term, with the first 3 years being interest-only, followed by a 30-year amortization schedule for 2 years. The loan-to-cost ratio is 48.2%, and there is a 0.5% lender origination fee and a 0.5% lender exit fee. There is no prepayment penalty, and the loan is initially fully recourse. However, the recourse will be reduced to 50% once the property demonstrates a debt service coverage ratio (DSCR) of 1.4x for 6 months.