ASB completes USD116m self-storage portfolio financing

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ASB Real Estate Investments (ASB) and Talonvest Capital have announced the USD116 million financing of ASB’s stabilised Self-Storage Portfolio I through a three-year, floating-rate loan negotiated by Talonvest Capital and provided by Invesco Real Estate.

ASB executed the financing on behalf of its Allegiance Real Estate Fund, a USD7.3 billion core vehicle.  

In 2018 in partnership with the William Warren Group, Allegiance acquired this 10-building portfolio, located in Phoenix, Denver, San Diego, Los Angeles, Jersey City, and on Long Island, NY. Comprising 9,821 units and 785,000 square feet of space, the recently developed, state-of-the-art portfolio is 90 per cent occupied. In addition, ASB also owns, in partnership with the William Warren Group, 12 more recently developed self-storage buildings with 11,115 units and over 936,000 rentable square feet of space in New York, Miami, Portland, Los Angeles, Seattle, San Diego and Phoenix. These properties have state-of-the-art security, design and finishes, which cater to discerning users of modern self-storage.  

Larry Braithwaite, ASB Senior Vice President and Allegiance Fund Portfolio Manager, says: “Our self-storage investments continued their strong leasing performance with further rent growth opportunities projected during 2021 and beyond. Talonvest did a great job managing the lender competition and negotiating a very attractive loan. This financing is part of ASB’s conservative leverage strategy to achieve the most favourable financing terms given attractive prevailing debt market conditions.”

"This loan is representative of the Invesco debt platform's focus on high quality real estate and best-in-class institutional sponsorship," says Justin Chausse, Senior Director at Invesco Real Estate. "ASB and William Warren Group are market leaders in the growing self-storage sector and we are glad to add this loan to our growing alternative asset class portfolio.”

Clark Porter, President of William Warren Group, adds: “The Talonvest team has decades of storage financing knowledge and it shows in the results they delivered for us.” The Talonvest team members responsible for this assignment included Eric Snyder, Kim Bishop, Jim Davies, Tom Sherlock, Lauren Maehler, and Mason Brusseau.