- March 26, 2018
- City Welcomes Big Storage Center
- March 6, 2018
- Newmark Looks at Defining Trends in the Commercial Real Estate Market for 2018
- February 9, 2018
- Newmark Expands San Francisco Production Staff With Key New Hires; On-Boards Five Member Team Specializing In Commercial Mortgage Finance
- January 25, 2018
- Newmark Completes $2.5 Billion of Commercial Mortgages During 2017
- November 27, 2017
- Despite Forecast Increases, Rates At Historic Lows
- November 8, 2017
- Newmark® Completes $726MM In Commercial Mortgages During 3Q2017
- October 24, 2017
- Newmark’s Michael Heagerty Elected to MBA’s 2018 Board of Directors
- October 11, 2017
- Newmark Names Producers Andy Bratt And Demetri Koston as Partners With Largest Privately-Held Commercial Mortgage Bank in Western U.S.
- September 13, 2017
- Real Estate Loan Administrator – San Francisco, CA
- August 7, 2017
- Newmark Completes $731 Million in Commercial Mortgages During 2Q2017
- June 29, 2017
- Newmark Secures $151 Million of New Financing on Behalf of Presson Companies for 30 Property Arizona Industrial Portfolio
- June 19, 2017
- Newmark Secures $68M Financing for Silicon Valley Assets
- June 5, 2017
- Creating a Better Borrower Experience
- April 12, 2017
- Newmark Completes $517 Million in Commercial Mortgages During 1Q2017
- April 4, 2017
- Keeping Focus on Controlled Variables
- March 7, 2017
- Owners of Stabilized Properties Increasingly Turning to Floating-Rate Loans
- February 27, 2017
- CMBS Is A Vital Part Of The CRE Finance Environment
- February 6, 2017
- Multifamily Financing Tightened, But Not Stopped
- February 1, 2017
- JV Secures $325M in Financing to Revive Potala Tower Hotel, Apartment Project in Seattle
- February 1, 2017
- Real Estate Loan Production Associate (Los Angeles)
- January 23, 2017
- Newmark Completes More Than $2.4 Billion of Commercial Mortgages in 2016
- January 19, 2017
- Newmark Turns 10 in Seattle; $421MM Pacific Northwest Production in 2016
- December 16, 2016
- Newmark Turns 25, Reaches $30 Billion in Commercial Mortgages
City Welcomes Big Storage Center
March 26, 2018
Gilroy Self Storage Outlet, a project that will cost $12 million when completed by early in 2019, will provide 793 storage units on 4.5 acres at 9080 San Ysidro Ave. The project was celebrated in a ceremonial groundbreaking on March 16.
“We plan to build this and operate it in our family, as an investment we can keep forever,” said Sean Venezia. “We don’t buy and flip or build and sell.”
The principal investors—Ted Crocker, President and CEO of Darme Holding Co Inc., George Huff and Venezia, both managing partners at Veneto West, secured a 12-year 5 percent fixed loan for the project from Newmark Realty Capital.
Regarding security, Newmark sees the South Valley and self-storage to be a safe investment. Newmark, which manages investments principally for insurance partnerships, has built in an interest reserve on loan, giving Gilroy Self Storage the flexibility to pay only the interest rate during construction, along with the time it takes to rent the units.
“We love good locations,” said Newmark Realty Capital Production Associate Tom Dao. “We love Gilroy and we’ve done some financing in Morgan Hill recently. We are very active in Silicon Valley.”
For Dao and Newmark, Gilroy holds several advantages for investors—chiefly, more affordable land along with a growing population. Newmark also sees self-storage as the kind of desirable conservative investment.
“Typically, as a developer, you get your construction financing loan from a local bank, and usually those banks expect you to pay off that loan in a couple of years,” Huff said. “In the self-storage business, it takes a few years to lease out about 800 units. Our rate helps to take some of the pressure off.”
Gilroy Self Storage, described as modern industrial, will consist of six single-story buildings for rentable units and one two-story management buildings with an apartment for the onsite manager. The site will be secured by a surrounding wall, an electric gate and 30 to 40 security cameras. Each customer will have a personal code.
“As people are being driven into smaller homes they will need a place to store their stuff,” Venezia said. “Self-storage has become a necessary product for many people and businesses.”
While most customers will be residential customers, estimated at 80 percent, the rest likely will be small business owners, such as landscaping businesses and plumbers, who are looking for space and security for their property, he said.
With assistance from Gilroy Chamber of Commerce Business Relationship Manager Eric Howard, Gilroy Self Storage managed to navigate through the approval process. Now that the ground has been broken on the $3.2 million property, the company just needs dry weather to get started.
“We were approved pretty quickly, but it took quite awhile to get through the planning process,” Huff said. “We had some issues with PG&E about where we were going to get our power. The entitlement part of it was pretty easy.”