SELF STORAGE CAPITAL
DEVELOPMENT / CONSTRUCTION LOANS
If you’re looking to build a new or refurbish an existing self-storage property, look no further than Self Storage Capital. Conventional bank financing or loans through the SBA can involve a lengthy process or be difficult to obtain. As a private lender offering a wide range of capital products, we offer a streamlined application process and a quick turn-around to get you the customized, well-structured loan you desire. And with our in-depth industry knowledge in a broad range of markets, we understand how to help you achieve your growth goals.
Loan Terms
INVESTMENT AMOUNT: $5,000,000 and up
INVESTMENT TERM: Generally 6 years
INVESTMENT: 90% investment to cost on a development property
INVESTMENT STRUCTURE: First mortgage, payable interest-only at 6.9% per annum
SSC also receives 49.9% interest in operating cash flows and cash flows from sale/refinancing after developer recovers equity plus 6.9% preferred equity return
Developer grants SSC right of first refusal (ROFR)
Professional management required (generally by publicly traded self-storage REIT)
AMORTIZATION: Interest only – no required principal payments before maturity
ORIGINATION FEE: Generally 1%
PREPAYMENT FEE: 3-2-1-0 after 3-year lockout
DUE DILIGENCE DEPOSIT: $20,000 payable upon issuance of term sheet
RECOURSE: Completion guarantee only. Non-recourse after CO with customary carve-outs
INTEREST RATE: 6.9% fixed
