Looking for favorable and flexible financing for your self-storage facility?
Does your self-storage facility need refinancing with flexible terms for your exit strategy? We got you covered.
“We were able to help our client refinance out of a construction loan into early favorable permanent financing that included 12 months interest-only and an attractive interest rate. The client was focused on getting a loan facility that would allow him to lower his interest rate significantly and use minimal cash flow so he could fund the second phase of construction. He also wanted no prepayment penalty to provide multiple exit strategies.”
-Chris Miller
Deal Quick Look:
10-year Term
12 months interest-only
No prepayment penalty
25-year Amortization
The Property: The facility has 200 self-storage units plus 50 boat and RV storage spaces. Upon completion of the second phase, the facility will have 250 self-storage units and 100 boat and RV storage spaces. Sixty percent of the units are climate controlled with a high concentration of larger units to meet customer demands. The borrower went the extra mile and added zero landscaping and stone work to the entrance to add curb appeal positioning the asset well in comparison to the local competition.
The Challenge: The facility was not fully stabilized and did not have the trailing historical financials to qualify for traditional permanent financing. The borrower also wanted an interest-only period to bridge the gap in cash flow until full stabilization was achieved.
The Solution: Chris Miller and Marshall Baker, Managing Directors, placed the debt with a regional banking institution that is part of our NNN lender network. The lender was familiar with the structure and has a track record of success in financing similar projects/clients with Triple Net Lending. The lender targets cash-flowing self-storage facilities and Triple Net Lending knew they were the perfect solution to allow the borrower to lock in a low interest rate and refinance early.
