San Francisco, CA – Newmark Realty Capital, Inc. arranged the refinancing for Power Kuakini Self Storage with a fixed rate loan. The property consists of 620 storage units. The operation is managed by SKS Management, a top tier self-storage management company. Newmark arranged a loan that allowed the borrower to lock in a low rate six months prior to the open prepayment window for its maturing loan. The lender is an insurance company that uses Newmark Realty Capital as its loan correspondent. This type of forward rate lock was especially beneficial in times of interest rate volatility. Newmark will be servicing this loan on behalf of the lender; this role provides the borrower a constant servicing relationship with a mortgage banking firm that has built an expertise in the self-storage industry.
The strength of this transaction was based on strong location, sponsorship, excellent property management and modest leverage. The origination team at Newmark consisted of Eric Von Berg, Principal, and Tom Dao, Associate, who provided certainty of execution through a smooth underwriting, due diligence and closing process.
“Tom and Eric provided a seamless process from origination to loan closing, and gave us the confidence that we could complete this refinancing in this environment of interest rate volatility. With the new loan, we were able to avoid impounds, bank charges, and improved our cash flow significantly,” – Susan Matthews, Managing Partner.
About Newmark Realty Capital, Inc.
Newmark Realty Capital, Inc. is a full service mortgage banking firm with a impressive lineup of correspondent lenders utilizing Newmark’s production, closing and servicing capabilities. Established in 1991, Newmark is currently staffed by over 60 employees in regional offices throughout the western United States. The company services approximately $9 billion representing approximately 1,100 loans. Newmark is rated as a Primary Servicer by Standard and Poor’s and is one of a select few non-banking/non-insurance chartered companies with this designation. In 2015, Newmark arranged more than $2.3 Billion in loans for its clients.
For more information on this transaction please contact Eric Von Berg at (415) 956-9922 or Michael Heagerty at (415) 956-9854.