Jernigan CapitalInc. has executed term sheets with two commercial banks for the saleof senior participations/A notes on five of its self-storage development investments.
The development projects involved include newly constructed andopened self-storage facilities in the Atlanta; Orlando, Fla.; and Tampa, Fla., metropolitanareas, and a self-storage facility expected to open in the Charlotte, N.C., areain the week of July 25.
Proceeds from the A note sales will be approximately $18.6 million,according to the company. The proceeds equal approximately 58% of the company'saggregate investment in the projects. The notes will bear interest to the companyat a floating rate of 30-day LIBOR plus 3.5%, or a current rate of 3.95% per annum.Each note will have a term of three years from initial issuance.
Jernigan Capital expects to close the sale of the A notes onthe Atlanta, Orlando and Tampa investments by Aug. 1 and the A note on the Charlottefacility by Aug. 15. Upon closing of the sales, the company will have sold eightA notes for aggregate proceeds, advanced and committed, of $33.6 million and a weightedaverage current interest rate of approximately 3.9%.