Strategic Storage gets $40.5 million CMBS, repays some of revolver

By Sarah Lizee

Olympia, Wash., Feb. 3 – Strategic Storage Trust IV, Inc. entered into a $40.5 million CMBS financing with KeyBank NA as lender under a mortgage loan on Friday, according to an 8-K filing with the Securities and Exchange Commission.

The proceeds were used to pay down a portion of the company’s existing revolver with KeyBank.

The CMBS loan is secured by a first mortgage or deed of trust on each of seven properties owned by Strategic Storage.

The loan has a maturity date of Feb. 1, 2030.

Monthly payments due under the loan agreement are interest-only, with the full principal amount becoming due and payable on the maturity date.

The amounts outstanding bear interest at an annual fixed rate equal to 3.56%.

Starting two years after securitization, the CMBS loan may be defeased in whole but not in part, subject to some conditions.

There are customary affirmative and negative covenants under the loan.

Strategic Storage is a public non-traded REIT based in Ladera Ranch, Calif., focused on income-producing self-storage facilities and related self-storage real estate investments.

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