Storage Unit Construction Financing

The most popular self storage loans are conventional bank loans sba 7 a loans for commercial real estate and sba 504 loans.

Storage unit construction financing.

Self storage financing is available up to approx 9 million and 90 loan to value for a purchase or refinance and 90 loan to cost for ground up construction or expansion of a facility these loans are available for those who do and those who do not have storage industry experience. The loan is normally recourse meaning the borrower will be personally liable for the loan. New construction loan options. Construction should be concrete block brick or wood framed.

Other alternative loan options exist but typically are meant for short term financing. Self storage construction loans are a unique product for many lenders. Self storage commercial mortgages are available for self storage and mini storage properties that are stabilized and located in high traffic areas. Additionally loans can be guaranteed by the appropriate small business administration program.

Our self storage loan team can guide you through the process of building buying or improving a facility and help you discover the benefits of owning a self storage business. Long term permanent 5 10 and 15 years. Go this route when refinancing a short term loan or acquiring refinancing a stabilized property 80 percent plus occupancy. Is the projects location within the lending footprint of the bank.

Typically construction costs can range is from 1 000 000 to 50 000 000. For long term loans more than 1 million the best source of financing is a conduit. Sba will finance up to 5 million per one borrower. Sources of self storage construction loans are banks and private commercial lenders.

Self storage construction financing usually starts with a short term construction loan or bridge loan often interest only for up to 18 months. You should prepare for you initial meeting. Sba loans are especially good for self storage facilities because you can finance all of the construction interest and up to 2 years of loan payments. Self storage continues to be one of the fastest growing segments of commercial real estate.

Our self storage loan team will work with you from day one to get your money. Properties located in a tertiary market are considered on a case by case basis. Do you make self storage mini perm loans.