Cohen Investment Group Successfully Refinances Castleton Commerce Center in Virginia Beach

Refinancing of Castleton Commerce Center

Cohen Investment Group (CIG), a commercial real estate investment firm situated in Virginia Beach, has recently achieved a significant milestone by refinancing its ownership of the Castleton Commerce Center. This impressive facility spans over 470,618 net-rentable square feet and is primarily utilized for self-storage and flexible storage purposes. The refinancing process was facilitated by Eastern Union, leading to a $51.5 million fixed-rate financing agreement.

Background of Castleton Commerce Center

Located at 2424 Castleton Commerce Way, Castleton Commerce Center houses a combination of self-storage units and warehouse space. It not only contains approximately 142,843 square feet designated for self-storage but also features 327,775 square feet earmarked for warehousing. The complex consists of 409 storage units, 375 warehouse units, and provisions for 190 boats and RV park units, catering to a diverse clientele.

Originally, CIG acquired this property in 2021 through a $58.15 million bridge loan from Eastern Union. This latest refinancing marks a pivotal development, enhancing the financial sustainability of the center and enabling further growth potential.

Strategic Financing by Eastern Union

David Merkin, the senior managing director at Eastern Union's Mid-Atlantic branch, played a crucial role in securing this refinancing package. His extensive experience and knowledge of the market were instrumental in negotiating favorable fixed-rate terms that would facilitate CIG’s revenue growth trajectory. "Eastern Union provided competitive, fixed-rate financing enabling the client to continue to grow revenue substantially and exit at a high cap rate," commented Merkin.

Expanding CIG's Portfolio

Since its establishment in 2013, Cohen Investment Group has displayed an aggressive acquisition strategy, accumulating 64 self-storage properties through a total of 16 acquisitions within the sector. The company reported owning over 2.3 million square feet of rentable storage space alongside an impressive portfolio including over 30 multifamily assets and a variety of holdings in office, student housing, and retail markets.

Hugh Cohen, CIG’s president, stated, "We generated operational efficiencies at Castleton Commerce Center by taking a hands-on approach to property management. The site is now well positioned for the execution of a profitable exit plan in the coming years that will benefit our investors."

CIG is particularly focused on identifying value-add opportunities, purchasing underperforming assets at prices below replacement costs, and implementing strategic improvements through trusted property management partners. This methodology not only enhances the physical ambiance but boosts operational efficacy, raising the net operating income and cash flow well above initial projections.

Future Market Strategies

The firm continuously monitors market trends to strategize timely exits that yield positive capital events—ensuring robust returns for its investors. This level of strategic foresight underscores CIG’s commitment to maximizing value and enhancing its market position.

In summary, the refinancing of the Castleton Commerce Center stands as a testament to Cohen Investment Group’s persistent efforts in real estate investment and management. It cements Eastern Union's reputation for effective financing solutions within the commercial real estate sector, paving the way for potential future growth and operational success.

For additional insights on Cohen Investment Group and its ventures, visit Cohen Investment Group.