SELF STORAGE LOANS

SELF STORAGE FINANCING

The most important factor in closing a commercial mortgage loan is working with a seasoned industry professional that assures certainty of term, rate and execution.

Integra Real Estate Capital secures self storage loans for the acquisition, refinance and ground-up construction of self and mini storage properties nationwide. Our team has significant experience in all aspects of self and mini storage financing and investment. We offer our clients competitive fixed and floating rate loan options with all major capital providers such as domestic and foreign banks, insurance companies, Wall St. conduits (CMBS), REIT’s, pension funds and private lenders.

Over the past 15 years years, we have developed a network of senior-level relationships that extend throughout the national self-storage finance community. Our daily interaction with lenders allows us to closely track lender appetite and capital allocations for each lending institution.

The Following are Services We Provide to Our Clients:

•   Acquisition Financing
•   Refinance
•   Construction Loans
•   Conversion and Redevelopment
•   SBA Loans

CONVENTIONAL LOANS:

Integra’s long-standing lender relationships provide non-recourse financing for the acquisition and refinance of self-storage properties. We arrange customized loan structures with low interest rates, longer amortization periods and flexibility that allows the borrower to manage the property to its fullest potential. These financing options are designed for cash-flowing and stabilized storage properties with occupancy levels that exceed 80%. Geographically, these property can be located in primary, secondary or tertiary markets.

Our capital sources for conventional self-storage financing include: commercial banks, Wall Street conduits (CMBS), life insurance companies and REIT’s.

Most loans feature a fixed-rate 5 or 10-year term loan options and are based on a 30-year amortization schedule, depending on the investors objective. The maximum achievable loan-to-value (LTV) for the senior debt is 75% and higher with mezzanine loan. Integra’s strength and experience in arranging competitive non-recourse financing for self-storage operators allows our clients to grow and implement their storage portfolios.

BRIDGE LOANS:

We originate short to medium term non-recourse bridge loans for the acquisition and recapitalization of existing self-storage properties. Bridge loans are ideal for transitional, non-stabilized assets with a value-add component, or segments where a quick closing with certainty of execution is needed. Interim loan platforms are available for self-storage operators who are looking for flexibility while undergoing a transition. Common bridge loan scenarios include involve renovation, recapitalization or the ramping up of the occupancy levels at the property due to mismanagement of previous owners.

Our experienced loan officers are committed to guiding you through every phase of the financing process. Bridge loans carry either a fixed or variable-rate structure and are generally priced over a LIBOR index. Terms range between 12-36 months with options to extend the loan beyond initial maturity date.  Loans over $3,000,000 will likely warrant a non-recourse execution, with standard carve-outs.

CONSTRUCTION LOANS:

When it comes to arranging competitive self-storage construction loans, we utilize our trusted network of construction lenders that provide speed, execution and certainty. Our relationship lender list is comprised of domestic and foreign banks, as well as debt funds that have the ability to offer non-recourse construction loans for experienced ground-up developers with a good track record. Having the right relationship in this arena is critical in getting your self-storage project off the ground in a timely manner and properly funded. Aside from location of the project, sponsorship remains the single most important characteristic in construction financing.

By working with Integra on your next development project, you will gain access to our lender relationships that we have fostered through the years. Our experts will underwrite the economics of the construction budget and negotiate aggressively on your behalf to achieve a well-structured loan that is customized to your financing needs.

MEZZANINE FINANCING:

Our financing platform includes mezzanine financing for self-storage properties located in primary and secondary markets that feature strong demographics. Mezzanine loans allow sponsors to go higher in the capital stack (LTV) and are also considered as subordinate financing to the senior loan. Mezzanine structures are generally ideal for opportunistic purchases to minimize the direct equity contribution that the sponsors would otherwise have to make. These transactions include self-storage portfolio acquisitions that exceed $25,000,000. Mezzanine loans are generally co-terminus with the senior debt. Pricing of these financing vehicles varies and is based on risk associated with the transaction. Our experienced team can navigate you through the mezzanine financing process and provide you with a customized solution for your next project.

DISCOUNTED PAY-OFF (DPO) FINANCING:

It is not uncommon for commercial real estate lenders to offer borrowers an opportunity to pay the lender off at a discount. This practice allows lenders to raise capital to re-position their balance sheet and also offset any regulatory pressure that may exist. It may also reduce exposure in certain real estate markets or help eliminate risk related to underwater real estate assets.

This mechanism is called Discounted Pay-Off.

As a leading commercial mortgage brokerage and advisory firm, Integra offers clients a network of lenders who can provide up to 90% financing of the agreed upon pay-off amount. These arrangements are generally offered to borrowers who can close on the new loan quickly. We understand that it can be challenging to find a new lender to provide the necessary capital to pay off a legacy lender, both because the discounted loan payoff opportunity is likely only available for a short period of time, and also because there is generally institutional reluctance among banks and conventional lenders to help fix what is viewed as a competitor’s problem.

Integra’s valuable lender relationships allow investors to close on new a loan with attractive terms and conditions while meeting the investors desired objectives. The discounted pay-off of the old loan simultaneously reduces the debt burden on borrowers and lowers the monthly payment, generating additional cash flow to the borrower who can reinvest in the growth and expansion of the hotel.

Integra Real Estate Capital maintains its unique relationships with core self-storage lenders who provide non-recourse self storage loans to investors and developers alike. We assist clients in obtaining competitive permanent, bridge and construction loans and negotiate aggressively on their behalf to achieve their investment property goals and objectives.

Speak to one of our professionals about your next project:  (212) 353-2800