Trojan Storage Gets $70M Refi on Four Sites, One in San Jose

Trojan Storage has snagged $70 million in loans to refinance self-storage facilities in San Jose, Campbell, Rancho Cordova and Camarillo.

The El Segundo-based self-storage developer led by Bret Henry secured the financing to recapitalize the newly built facilities, the Silicon Valley Business Journal reported.

The locations of the self-storage buildings, name of the lender and terms of the loan were not disclosed. The structured permanent loan will retire the buildings’ existing construction and bridge debt.

Brokers Andy Bratt, Amit Tyagi and Sean Kuang of Gantry represented Trojan Storage in the deal.

“This transaction removes the heat of construction or bridge loan pricing and will allow Trojan’s strength as an operator to shine,” Bratt said in a statement.

Tyagi said a general cooling in the national self-storage market, plus uncertainty with the economy, stagnant housing starts and other economic headwinds make for a challenging environment in obtaining financing.

Since most of the self-storage properties are large, they need time “to stabilize,” Gantry said. The secured financing allows Trojan Storage to do this with a low fixed-interest rate.

Gantry worked with an unidentified insurance company to underwrite the properties and create the financing structure, Tyagi said.

Trojan Storage, founded in 2007 by Henry, has 49 storage facilities in California, Oregon, Washington, Illinois and New Jersey, according to its website. It also operates under the BA Self Storage, Fort Self Storage and Safe Self Storage brands.

In Los Angeles, the developer was approved this summer to build a self-storage facility with 25 apartments above offices and art studios. Trojan also plans to build nine townhomes to mask a 220,000-square-foot storage facility nearby in the northeast San Fernando Valley.

— Dana Bartholomew