Andover Properties, an investment firm that owns, operates, and develops commercial property throughout the U.S. with a focus on self storage, manufactured housing, RV parks, small bay industrial, and car washes, has announced the launch of Andover Storage Lending.
According to a press release, Andover Storage Lending was developed to originate non-recourse financing for self storage sponsors nationally. It is designed to provide bridge and construction financing for up to 90% of value without requiring third-party management or bank deposits.
“Our Storage Lending program marks the continued growth of Andover Properties," said Brian Cohen, President and CEO of Andover Properties. "We are excited to leverage our 20-year track record and storage sector expertise to thoughtfully deploy capital on behalf of our investors.”
The program’s first loan origination went to Madison Capital/Go Store It to refinance a Class A self storage facility located in Richmond, VA. “We are thrilled to have Madison Capital/Go Store It as our first borrower," said Zach Harding, Chief Investment Officer of Andover Properties. "As local and regional banks continue to pull back from real estate financing, we look forward to partnering with more self storage owners as their go-to capital provider for non-recourse bridge or construction financing.”
“We are pleased to have closed our bridge loan with the Andover team in a quick and smooth transaction," stated Evan Stephens, Chief Investment Officer of Go Store It. "It makes a world of difference when your counterparty is deeply familiar with the asset class. We were able to secure attractive terms relative to alternatives in the market and hope to work with Andover on future transactions.”
Andover reports that several other loans in negotiation are expected to close in Q2 and is actively quoting bridge and construction loans for self storage facilities across the U.S.
Andover's current storage portfolio totals over 13.5 million rentable square feet across 162 facilities in 18 states and operates under the Storage King USA brand. The company was founded in 2003 by Brian and William Cohen, and is headquartered in New York City with offices in Miami and San Francisco.
For more about Andover Storage Lending, visit Andover Storage Lending – Andover Properties.