3650 Capital has originated an approximately $24 million senior construction loan to support the completion of a self-storage facility at 1060 Nepperhan Avenue in Yonkers, NY. The project will deliver 949 self-storage units and is planned to be branded and operated under the CubeSmart banner.
The development is being sponsored by Cayre Equities alongside KCT Inc., the property’s original developer. The new financing from 3650 Capital is structured as exit capital arranged in tandem with the borrower’s emergence from a court-supervised reorganization process, providing a path forward for the capital stack following the restructuring.
According to the parties, the transaction structure is designed to give the sponsorship team the ability to move more quickly toward finishing the project while creating greater certainty for stakeholders through an approved plan of reorganization. The loan is secured by a first-priority mortgage on the Yonkers property, positioning 3650 Capital at the top of the capital structure.
The financing includes a 36-month initial term and provides the borrower with an additional six-month extension option, offering a defined runway for construction completion and stabilization. The capital will fund the final phases of development for what is described as a best-in-class self-storage facility in a supply-constrained local market.
Eyzenberg & Company acted as capital advisor on the transaction. Led by David Eyzenberg, the firm structured and arranged the required debt and equity to facilitate the loan and support the sponsors’ emergence from the court process. Commenting on the deal, 3650 Capital co-founder Jonathan Roth noted that the financing structure is expected to resolve outstanding claims tied to the reorganization while enabling delivery of the new CubeSmart-operated facility.
