Self storage group inks loan deal for NJ facility

Real Estate Weekly,  June 27, 2007  

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AFC Self Storage Finance Group, a subsidiary of boutique real estate investment bank AFC Realty Capital, arranged acquisition financing for a 14-acre industrial site and a 160,970 s/f facility located on 13 Linden Avenue East in Jersey City, NJ.

Joseph Fatony of AFC Self Storage secured the $10.5 million loan on behalf of the ownership, Sterling Capital LLC, a wholly-owned subsidiary of Liberty Storage LLC.

"This loan demonstrates the continuing demand for self storage facilities in urban locations as well as lenders' willingness to provide the capital needed to develop and expand these properties," noted Paul Fried, president of AFC Self Storage Finance Group.

Built in 1979, the light industrial property currently on the site will be converted to a self storage facility by the new ownership. Situated adjacent Liberty Storage's existing facility, the conversion will allow the operator to double its storage capacity from 834 to more than 1600 units. In addition, the surrounding 14-acre site provides an ideal location for vehicle and boat storage.

The 10-year, interest-only (first two years) loan, at a 25 year amortization, was provided by a local financial institution.

AFC Realty Capital Inc. is a real estate investment bank with 20 years of experience arranging capital for middle market owners and developers around the country. Directed by experienced real estate entrepreneurs, AFC is recognized for crafting the most profitable financial solutions for its clients and using its relationships to bring the widest universe of institutional financing options to owners and sponsors. In 1006, AFC Realty closed over $1 billion of debt, mezzanine and equity.

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