Equity Based Services, Inc

EBS has acquired two new Self Storage facilities. The properties were acquired as two stand-alone facilities with one located in Colorado Springs, CO and the second located in Missouri City, TX.

Access Self Storage located at 6604 Murphy Road, Missouri City (Houston Area), TX, is a single-structure climate-controlled facility with 560 rental units and 55,472 Net Rentable Square Feet of self storage space. EBS now owns 26 Self Storage facilities in the state of Texas.

Access Self Storage located at 3150 Boychuck Avenue, Colorado Springs, CO consists of 487 climate controlled units (31 of them are office warehouse units) and 36 RV parking spaces. This property has a total of 77,720 Net Rentable Square Feet. This acquisition represents the second facility in Colorado Springs acquired by EBS.

Both facilities will be re-branded as American Mini Storage and managed by All American Property Management, Inc. (“AAPMI”) under the direction of Eric Kaplan.

The equity financing for these acquisitions came from the fully subscribed and closed EBS Income Fund III, LP and from the pool of EBS private client investors.

“These acquisitions should complete the portfolio for the EBS Income Fund III”, states Troy Downing, Principal, Equity Based Services, Inc.. Downing continues, “These two Access Self Storage facilities are strong class-A properties. The debt financing we were able to facilitate for these deals has allowed EBS to wrap up its year on a very positive note”.

The debt financing for these acquisitions came from a life insurance company and was arranged by Tavernier Capital Partners. The general terms included non-recourse, 7% interest, and a 10 year term with a 25-year amortization.

“In these days of short, 1-3 year loan terms, we were very happy to be able to secure 10-year notes for these projects”, states Downing.

“These transactions are further evidence that life insurance companies are a viable alternative to commercial banks for longer term fixed rate non-recourse debt”, states Saul Hoppenstein, Principal, Tavernier Capital Partners. Tavernier secured the financing through one of its life company correspondent lenders. The loans accounted for 62% of the purchase price at a fixed rate of 7% for 10 years with a 25 year amortization schedule. Hoppenstein further comments, “Due to low delinquency rates in the self storage sector lenders are actively looking to finance cash flowing well located facilities with established operators such as Equity Based Services.”

These acquisitions represent the final 2 closings for a busy acquisition year. EBS has acquired more than 508,000 NRSF of new Self Storage units, successfully refinanced maturing debt, and closed on their fourth private equity fund.

“These two final acquisitions of 2009 cap off a phenomenal year for EBS.” states Stephen Kaplan, CEO. Mr. Kaplan continues, “These facilities are strategically located in strong growth markets that EBS has been actively targeting. 2009 will be remembered as the year cash flow went on sale and EBS was able to acquire strong performing assets at discounted prices in first tier growth markets.”

EBS now owns 66 Self Storage properties in 11 states with nearly 37 thousand storage units and nearly 4.6 million Net Rentable Square Feet.About Equity Based Services, Inc

This article is for informational purposes only and does not, in any way, constitute an offering to buy or sell securities.