Storage Unit Construction Financing

Sba will finance up to 5 million per one borrower.

Storage unit construction financing.

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. For long term loans more than 1 million the best source of financing is a conduit. 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. Sources of self storage construction loans are banks and private commercial lenders. Is one of the. Additionally loans can be guaranteed by the appropriate small business administration program.

Prior to face time with the bank or construction lender ask the following questions. 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. New construction loan options. Go this route when refinancing a short term loan or acquiring refinancing a stabilized property 80 percent plus occupancy.

Do you make self storage mini perm loans. Self storage commercial mortgages are available for self storage and mini storage properties that are stabilized and located in high traffic areas. 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. Properties located in a tertiary market are considered on a case by case basis.

Construction should be concrete block brick or wood framed. 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. Typically construction costs can range is from 1 000 000 to 50 000 000. The loan is normally recourse meaning the borrower will be personally liable for the loan.

Long term permanent 5 10 and 15 years. Self storage construction loans are a unique product for many lenders. Is the projects location within the lending footprint of the bank.