By Evelyn Jozsa
Eastern Union Funding has arranged $9.4 million in financing for the construction and acquisition of a 950-unit facility in District Heights, Md. Poverni Sheikh Group received the 75 percent LTC loan, which includes a 30-day LIBOR base pricing. The project is expected to break ground in the first quarter of 2019 and will be branded as CubeSmart.
The new development will be located at 7618 Marlboro Pike on a 3.2-acre site near the intersection of Interstate 495 and Freeway 4, approximately 13 miles from downtown Washington, D.C. The area is densely populated, with approximately 21,800 units completed or under construction within a three-mile radius.
“Self storage in the immediate area has an occupancy rate of approximately 98 percent,” said David Merkin, vice president at Eastern Union, in prepared remarks. “There is very strong demand for new product as exponential population growth has been rising faster and has outpaced construction starts for new self storage development.”
Image courtesy of Poverni Sheikh Group