Dallas, TX – December 7, 2009 – (RealEstateRama) — Equity Based Services, Inc. (“EBS”) announced today that it has acquired Advantage Self Storage in Plano, Texas, located at 3900 McDermott Road.
The facility, which shall be rebranded as American Mini Storage, adds 554 units and 71,435 Net Rentable Square Feet to the current EBS portfolio of 64 self storage facilities.
The city of Plano was recently designated the best place to live in the Western United States by CNN Money magazine, while Forbes.com selected the city of Plano as one of the three “Top Suburbs to Live Well”. In addition, Plano schools consistently score among the highest in the nation and Plano has been rated as the wealthiest city in the United States by both CNN Money and the United States Census Bureau.
“This is EBS’ first acquisition under its new aggressive acquisition model. In the next twelve months EBS expects to double its acquisition volume with high quality, cash flowing properties similar to the acquired facility, Advantage Storage of Plano,” states Eric Kaplan, COO, of All American Property Management, Inc. (“AAPMI”), the company that will be overseeing management and operations at the newly acquired facility.
Equity financing for this acquisition came from the EBS pool of Private Client Investors as well as the recently closed EBS Income Fund III. The debt financing for the acquisition was provided through an assumed loan with a 72% LTV mortgage from Bank of America, N.A. This loan features a fixed interest rate of approximately 5.6%, non-recourse, and with an Interest-Only period that ends in 2012. The loan switches to a 30 year amortization after the Interest-Only period.
“The debt that EBS assumed for this property simply doesn’t exist in the current lending market environment,” states Troy Downing, Fund Manager for EBS Income Fund III. He adds, “The ability to assume such a strong loan was definitely a bonus with this deal.”
“The acquisition of this facility that is well situated in a strong demographic market such as Plano is a great addition to the EBS portfolio,” states Stephen Kaplan, CEO, Equity Based Services, Inc. “This is a quality facility; a Class-A build-out in a Class-A location, that is already stabilized, with cash-flowing occupancy.”
This transaction was sourced through Angelo Tomasello, President of Locke Acquisition Group, LLC, who specializes in Self Storage acquisitions.
About Equity Based Services, Inc
EBS is a Private Real Estate Company specializing in the acquisition and management of self-storage property. EBS is one of the top privately held owner/operators in the US. EBS currently owns and operates 64 Self-Storage properties in 11 States. For more information, contact Kurt Ambrosius at 619-220-6700.
This Press Release is for informational purposes only and does not, in any way, constitute an offering to buy or sell securities.