Our loan programs have a minimum loan size of $1,000,000 with technically no maximum.
We Provide Self Storage Loans Nationwide
The typical maximum 1st mortgage loan to value is 75%, with higher LTV’s of up to 85% available by using mezzanine or pref equity.
Our programs have several fixed rate options, starting at variable rates up to 25 years fixed.
Typically we can achieve between 3 – 5 years interest only at maximum leverage, with full term interest only starting at around 65% depending on the property.
The vast majority of our programs are non-recourse, however some require personal guarantees.
Every market in the United States is available.
Regardless of where the property is in the life cycle, we will have a highly competitive loan option for it.
Self-storage real estate as a business is not for everyone. However, for the private investors, small/middle market real estate entities, and family offices that are into it, their need to access commercial mortgages, construction loans, cash out leveraging, refinancing loan vehicles, CMBS, bridge lending, mezzanine financing, preferred equity, and real estate private equity creates big activity for us. When we say “us” we are referring to Clopton Capital a nationwide commercial mortgage broker with many $ billion of closed commercial property deals under our belt in just 10 years. We lend to self-storage owners through their partnerships, trusts, corporations, LLCs, Delaware Corporations, estates – even to foreign nationals. These self-storage loans range from $1 million to $ 40 million or more. 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.
Types of Self Storage Loans and Financing We Offer
For any self-storage facility, we can offer a variety of terms and structures for a commercial loan or term loan, including SBA loans. Below is a general outline of our capabilities:
- LTV ratio up to 75% for a 1st commercial mortgage, 85% with mezz/pref
- Up to 30-year amortization, interest only available
- Up to 10-year fixed rate loan term (longer at lower leverage)
- Non-recourse and recourse options for loan payment
- Rates – competitive loan terms; fixed rate loan or variable rate options
Below are the self-storage lending types that our loan officer experts are able to offer investors:
- SBA Loan (Small Business Administration) & USDA Loan
- Fixed and floating rate
- Ground up construction financing (https://cloptoncapital.com/commercial-construction-loans/)
We guarantee you that we can provide you direct access to the most competitive self-storage property lenders in the USA with the easiest terms and lowest interest rates possible. Let our experienced mortgage brokers connect you to the diverse spectrum of stellar self storage lenders at our fingertips.
Case Studies of Self-Storage Financing and Loans with Clopton Capital
Case Study 1: A partnership came to us to refinance and cash out of two self-storage facilities located in Washington and Portland. None of the partners wanted to guarantee the loans. They were looking for flexibility in prepayment and long-term fixed rates. We were able to structure a 70% LTV, $4 million & $3 million deals for the two properties with a bank partner that gave them flexible prepayment, a low 7-year fixed rate, 30-year amortization, with non-recourse.
Case Study 2: An investor through his LLC wanted to acquire and turnaround a self-storage facility in NC that had been under-performing due to mismanagement by the current owner. He wanted a non-recourse short-term deal that would get him acquisition dollars and rehab money. We structured a $5 million bridge loan with non-recourse, 70% of stabilized value, interest only with a very competitive rate, and it included rehab money for the borrower to execute his plan and implement his turnaround plans.
Case Study 3: A trust was looking to cash out refinance a self-storage facility located in Florida. The borrower was looking for maximum leverage, non-recourse, and maximum cash flow. We structured a $7 million CMBS loan that got the borrower 75% loan to current value, over $3 million cash out proceeds in his pocket, a very competitive 10-year fixed rate, and a 30-year amortization. This deal maximized both his cash proceeds and forward cash flow, all while keeping the deal non-recourse.
Self-storage property leveraging is an all-embracing real estate loan arena that begins with possibly a straightforward purchase transaction but reaches further afield into the world of new construction loans or securing bank mortgage advances for renovations or unfinished buildings. Refinancing for maturing self-storage real estate mortgages or those under pressure from rising variable interest rates is an everyday activity. Most importantly, if you have held your self-storage facility for a long time with resultant appreciation and you want a hard money cash out, this too is considered to be a real possibility.
To understand more about self-storage asset-backed funding, contact one of Clopton Capital’s commercial mortgage lenders by calling 866-647-1650 or using the Contact Us form available from the menu. You’re always welcome to work with us to find the right self-storage property loan rates and repayment plans to suit your every possibility. And with low closing costs attached to a straightforward documentation and underwriting process, your commercial loan process will be stress-free.