Newmark secures $125M refinance for Rosewood’s self-storage portfolio

PGIM Real Estate provides financing through its core lending platform

Midwest to Mid-Atlantic — Rosewood Property Company closed on a $125 million fixed-rate refinance for a 19-property self-storage portfolio that includes assets across the Midwest, Northeast and the Mid-Atlantic regions. PGIM Real Estate, the real estate investment and financing arm of Prudential Financial, provided the financing through its core lending strategy.

Newmark co-presidents of Global Debt & Structured Finance Jonathan Firestone and Jordan Roeschlaub, vice chairmen Nick Scribani and Clint Frease and director John Caraviello secured the financing in collaboration with vice chairman of Self-Storage Capital Markets Aaron Swerdlin and executive managing director of Strategic Advisory and Liquidity Solutions Andrew Warin.

“This portfolio represents a critical mass of stabilized self-storage facilities in markets with strong demographics and underlying fundamentals. Rosewood has owned the properties for 10 years, and this refinance allows us to repatriate significant equity, which will be redeployed into the sector as we continue to grow our self-storage holdings,” said Brandon Cooke, senior vice president at Rosewood Property Company. “We’re thankful for Newmark’s efforts in securing compelling debt financing despite challenging market conditions.”

The multi-state portfolio encompasses 13 properties in Pennsylvania, three properties in Maryland, and one property each in New Jersey, Indiana and Kentucky. Collectively, the portfolio includes more than 9,970 units, across 1.2 million rentable s/f and has demonstrated a strong NOI growth, with an average occupancy of 91% over the past 10 years.

“This refinancing highlights the market’s continued appetite for well-performing alternative real estate sectors such as self-storage,” said Roeschlaub.

“We are pleased to have provided this financing to Rosewood through our core lending strategy,” said Paul Geyer, managing director at PGIM Real Estate who arranged the financing on the firm’s behalf. “We continue to maintain a strong presence in the self-storage sector through both our core and core-plus lending strategies.” MAREJ

Rosewood Property Company currently owns and operates 84 self-storage facilities totaling around 6 million rentable s/f. The company continues to focus on growing its self-storage portfolio through both acquisitions and new developments.