Self-storage is the asset class where physical occupancy and economic occupancy diverge the most, and lenders have learned to read the second one. A facility can show full units and still underwrite poorly if the rate per square foot has been bought with concessions and the delinquency roll is long.
What the file turns on
Economic occupancy rather than unit count, rate per square foot against the submarket, the expense ratio, the condition of the gates and the management software, and whether climate-controlled space is priced separately.
Where deals fail
A new build opening within a few miles, a seller who has held rates flat for years, and a facility running without the management system the pro-forma assumes.
Portfolios
Multi-facility files are sized on the weakest property as well as the aggregate — one lagging site can set the proceeds for all of them.
Our minimum loan is $200,000. We are a direct commercial lender working across the 43 states we serve, in business since 1998. We do not publish a rate for this product because the number depends on the file — call and we will quote the deal in front of us.
Retail-to-Storage & Adaptive Reuse Financing · Commercial lending · Investment property financing · All loan types · All property types