Storage Unit Construction Financing

Self storage loans are used to space out the total cost to build or acquire storage facilities over a 20 30 year period.

Storage unit construction financing.

Your goals will impact the kind of financing best for you. Self storage lenders generally look at the operations financial performance value of the real estate the local market and the credit profile of the borrower. Self storage financing below are companies that specialize in financing self storage and mini storage facility purchases refinance and development. Types of self storage loans and financing we offer.

We provide financing in all 50 states. Construction and development financing is radically different from other credit facilities. Borrowers typically put in equity equal to 20 to 25 of the property value and the loans are typically recourse. Multifamily office retail industrial hospitals healthcare self storage hotel mixed use and churches.

Cash flow is simply the gross revenue rent generated from the property minus operating expenses insurance taxes utilities etc and financing expenses principal and interest. Self storage construction financing usually starts with a short term construction loan or bridge loan often interest only for up to 18 months. Most investors purchase self storage for three reasons. Many first time self storage developers assume a construction loan is similar to permanent financing.

The most popular self storage loans are conventional bank loans sba 7 a loans for commercial real estate and sba 504 loans. But approaching financing from this perspective may create long term negative consequences. Costs for single story self storage construction typically ranges between 25 40 per square foot not including land or site improvement costs. Etc debt service on the construction loan or mortgage taxes and liability insurance property not unit contents.

Whether it s a straight purchase new construction renovation short term bridge financing or refinancing with or without cash out clopton is the entity always ready to give you platinum service. Find the company that can assist you with your financing leads below. Self storage financing is used to finance the purchase renovation or construction of self storage units and commercial real estate buildings. To find a commercial loan suitable for your needs use our loan finder tool.

Unlike traditional lenders and banks these companies understand the self storage business. Cash flow appreciation and tax benefits. We provide loans for the following properties but not limited to. Multi story self storage building costs have more variables and can range from 42 per square foot to as much as 70 per square foot.

Loans are available for new construction expansion and rehabilitation.