Northmarq secures $8 million construction loan for 172-unit self-storage facility in Buford, GA
NEWPORT BEACH, Calif. (June 4, 2024) — Northmarq’s Newport Beach Debt + Equity team of Managing Director David Blum and Investment Analyst Alvin Cao has arranged $8 million in construction financing for Lanier Islands Storage Caves, a proposed self-storage facility with industrial condominium storage units. Located at 6034 Lanier Islands Parkway in Buford, Ga., the property is situated on a 7.67-acre site and will feature boat and RV storage less than a mile from Lake Lanier.
Northmarq arranged financing on behalf of the borrower, Storage Caves-Lake Lanier Buford, through a correspondent relationship with a local regional bank. The 70% loan-to-cost (LTC) ratio transaction was structured on a 2-year term with full term interest-only.
“This unique construction loan with a hybrid structure will allow the sponsor to sell individual storage units and retain the rest for a rental income stream,” said Blum.
Lanier Islands Storage Caves will offer individual condo units in “shell” condition ranging from 490 to 700 sq. ft. in size. Each unit will include individual an electric HVAC system with a WiFi thermostat, minimum 20-foot clear ceiling height, heavy duty concrete tilt wall construction and more. The property is planned to include climate-controlled storage condos with electricity as well as the ability for tenants to upgrade and customize their units.
Ideally situated along Lanier Islands Parkway, the self-storage facility boasts easy access to Interstate 985 and U.S. Highway 23. Upon completion, Lanier Islands Storage Caves will be the newest, highest quality storage facility in the immediate area and will serve the growing need for RV and boat storage in an area home to many boat and RV owners.
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Northmarq is a full-service capital markets resource for commercial real estate investors, offering seamless collaboration with top experts in debt, equity, investment sales, loan servicing, and fund management. The company combines industry-leading capabilities with a flexible structure, enabling its national team of experienced professionals to create innovative solutions for clients. Northmarq’s solid foundation and entrepreneurial approach have built a loan servicing portfolio of more than $76 billion and a two-year transaction volume of $52 billion. For more information, visit www.northmarq.com.
