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.
- ◦Sale/Acquisition
- ◦Financing