Storage Unit Construction Financing

Self storage commercial mortgages are available for self storage and mini storage properties that are stabilized and located in high traffic areas.

Storage unit construction financing. Self storage continues to be one of the fastest growing segments of commercial real estate. New construction loan options. Is the projects location within the lending footprint of the bank. Properties located in a tertiary market are considered on a case by case basis.

For long term loans more than 1 million the best source of financing is a conduit. Sources of self storage construction loans are banks and private commercial lenders. Additionally loans can be guaranteed by the appropriate small business administration program. The loan is normally recourse meaning the borrower will be personally liable for the loan.

You should prepare for you initial meeting. Self storage construction financing usually starts with a short term construction loan or bridge loan often interest only for up to 18 months. Is one of the. Our self storage loan team will work with you from day one to get your money.

Other alternative loan options exist but typically are meant for short term financing. Typically construction costs can range is from 1 000 000 to 50 000 000. The most popular self storage loans are conventional bank loans sba 7 a loans for commercial real estate and sba 504 loans. Construction should be concrete block brick or wood framed.

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. 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. Go this route when refinancing a short term loan or acquiring refinancing a stabilized property 80 percent plus occupancy. Self storage construction loans are a unique product for many lenders.

Prior to face time with the bank or construction lender ask the following questions. Self storage financing is used to finance the purchase renovation or construction of self storage units and commercial real estate buildings. Long term permanent 5 10 and 15 years.