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Mag Mile Capital has completed a $4-million loan for the purchase and renovation an old Sears into a self-storage facility in Memphis, TN.

Mag Mile Finalizes $4M Loan to Transform Memphis Sears into Self-Storage Facility

Mag Mile Capital has completed a $4-million loan to secure funds needed to purchase and renovate an old Sears store into a modern 854-unit, 83,040-square-foot self-storage facility in downtown Memphis, TN.

Matt Weilgus of Mag Mile Capital represented the borrower, Global Storage Partners, LLC to secure a loan with:

  • Interest Rate: Floating rate of WSJ Prime + 1% with a floor of 4.25% (current rate: 5%)
  • Amortization: Interest-only payments for the first 36 months, followed by 30-year amortization for the subsequent 24 months.
  • Loan Terms: Construction-to-mini-permanent loan structure. Floating rate of WSJ Prime + 1%, five-year term, three 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 six months.

The facility is located in the enclosed Southland Mall and will be converted from a retail store to a facility with individual storage units. It will be branded as and managed by Public Storage.

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Mag Mile Capital

About Lisa McDuffie

Lisa McDuffie arrives at ConnectCRE via REALTOR® world, where she served for nearly two decades as communications director for one of the nation’s largest REALTOR® organizations. She supported two membership-elected presidents who were commercial real estate practitioners, and managed the communications initiatives of the organization’s commercial special interest group. When not following the latest commercial real estate news, Lisa is zeroed in on her charismatic off-the-track thoroughbred as she makes the transition from an utterly failed racehorse to a lovely show hunter.

  • ◦Sale/Acquisition
  • ◦Financing