Crystal View Capital Fund II refinances AAA Platte Self Storage in Colorado Springs, CO Loan generates substantial savings for investors
LAS VEGAS, July 14, 2021 / PRNewswire / – Crystal View Capital Fund II, LLC (the “Fund”) is pleased to announce that AAA Platte Self Storage in Colorado Springs, CO refinanced its $ 8.6 million loan that carried an interest rate of 6.35% to a new $ 9.5 million loan at a fixed interest rate of 3.32%. By closing this refinancing, we were able to generate substantial savings and improve cash flow for investors by reducing debt service by more than $ 20,000 per month and get 10 years of interest only on debt payments.
AAA Platte Self Storage was acquired by the Fund in November 2019 and consists of 878 storage units and parking spaces and over 80,000 square feet of distribution space. Since the acquisition, we have executed several initiatives to increase the value of the asset:
- As previously announced in January 2021, we entered into a new 5-year lease with a large private logistics company for 50,000 square feet of warehouse space. This new lease should generate additional net operating income (“NOI”) of more than $ 300,000 annually, generating an estimated increase in the value of $ 4.6 million assuming a capitalization rate of 6.5%.
- Leased a total of over 80,000 square feet of industrial space which was vacant at the time of acquisition.
- Replaced the previous management with an experienced self-storage management team that was able to increase the occupancy rate from 78% to 88%.
- Completion of a subdivision allowing us to unlock the value of the site by separating self-storage and industrial space from retail space. The retail space is currently under contract to be sold, and we are optimistic that the sale will close within the next 60 days. If successful, the sale of the commercial space will allow us to extract almost all of the equity invested in the asset while retaining the strong self-storage cash flow and industrial components of the property. .
- Our in-house marketing department was successful in eliminating a third-party vendor, which significantly reduced marketing spend while maintaining a strong online marketing presence.
- The estimated monthly free cash flow (cash flow after operating expenses and debt service) for the Fund is now approximately $ 51,000
By carrying out this value-added strategy, the asset has exceeded its initial projections of an internal rate of return of 32% (“IRR”) and a multiple of 2.2x on invested capital (“MOIC”). based on our revised performance estimates. an IRR of 47.6% and a MOIC of 3.7x assuming an additional 27 month holding period and assuming we are successful in closing the sale of the retail space mentioned above .
Crystal View Capital is a private equity real estate company specializing in the acquisition and management of self-storage facilities and prefabricated housing communities.
For more information about the Fund, please visit our website: www.crystalviewcapital.com
Matthew Ricciardella, director and managing partner
Capital crystal view
Allie Hunsaker, Head of Investor Relations
Capital crystal view
T: (702) 570-3956
SOURCE Crystal View Capital