Buchanan Mortgage Holdings, LLC provided a $46,000,000 (67% LTC based on market land value; 47% LTV based on MAI appraised stabilized value), non-recourse construction loan to develop a Class A, 216,000 NRSF self-storage facility situated on 3.5 acres in Huntington Park, CA, one of the most densely populated cities of Los Angeles County that benefits from low existing supply per capita compared to the overall MSA and high barriers to entry for new development. BMH provided the original land acquisition financing in December 2021, which represented the third loan that BMH had closed with the sponsor, a Newport Beach-based private real estate developer specializing in self-storage and industrial developments throughout California. Due to our familiarity with the site’s history and prior experience with the sponsor, as well as Buchanan’s in-house self-storage expertise, BMH was able to get comfortable with the environmental status of the site and related remediation while also minimizing the sponsor’s cash equity investment by giving credit to the significant value of the re-entitled land above the sponsor’s cost basis.