A portfolio of Extra Space self-storage facilities in Florida and Georgia is the largest among 41 loans being pooled into Morgan Stanley’s next conduit commercial-mortgage securities offering.
The Extra Space Storage (NYSE: EXR) portfolio consists of a $65 million loan for seven facilities in Florida and George making up nearly 500,000 square feet of storage space as well as 3,200 square feet of retail space operated by the real estate investment trust.
The Extra Space loan is part of the 15.4% total pool concentration of self-storage properties in the multiborrower deal, according to presale reports from Kroll Bond Rating Agency and Fitch Ratings.
Industrial properties are the largest segment (21.7% of the cumulative loan balance) of properties in the pool, including a $60 million participation in the whole loan secured by a 760,000-square-foot industrial warehouse in Jersey City, N.J., leased to Mana Holding Co.
The NOLA Logistics portfolio, represented by a $38 million loan, is for industrial/office properties in St. Rose, La., within the New Orleans metropolitan statistical area.
The next-largest segments are office properties, making up 17.8% of the pool, followed by multifamily (17.7%).
Morgan Stanley is issuing 20 classes of certificates with 13 paying principal and interest, with preliminary AAA ratings from KBRA and Fitch for the super-senior and senior notes.
The notes secure the 41 loans tied to 125 properties, of which 15% are in Florida and 11.4% in California.
