With changes in the general economy have come changes in the self-storage finance world. Self-storage lenders, like those for all commercial real estate, apply more stringent underwriting standards when evaluating the potential of a construction, permanent or other self-storage loans. Even the refinancing process has become more challenging for self-storage owners, who must weigh their options and exit strategies. Some negotiate with lenders in an attempt to salvage underperforming self-storage properties. Tax issues are also a significant concern for self-storage owners. Cost segregation and 1031 exchange are possibilities to be explored. Financial and operating performance is reported quarterly by the self-storage real estate investment trusts (REITs): Public Storage Inc., U-Store-It Trust, Sovran Self Storage and Extra Space Storage.
Assembling Due-Diligence Documentation: Self-Storage Sellers Facilitate the Close With Detailed Financial Records
Financial records for self-storage properties must corroborate and confirm adequate cash flow, steady occupancy, comparable market strength, and historical financial stability. Without these general factors intact and certifiable, the buyer’s ability to secure financing is ...More
Sovran Self Storage to Present at Fall Investor Conference, Nov. 30
David L. Rogers, chief financial officer of Sovran Self Storage Inc., will present at the 2010 FBR Capital Markets Fall Investor Conference in New York City on Nov. 30, at 3:05 p.m. ET. The presentation will focus on Sovran’s financial results and business strategies going ...More
Self-Storage and Other Businesses Race to Use Expiring Solar-Energy Grant Program
Companies nationwide that are eager to take advantage of federal grant program providing owners of solar projects with a 30-percent cash incentive are rushing to complete by Dec. 31. Fortunately, Michael Kane of 126 Self Storage in Ashland, Mass., was able to finish his ...More
Financial Swaps Demystified: Is This Loan 'Fix' Right for Your Self-Storage Business?
A financial swap is a derivative in which one party exchanges a stream of interest payments for another party’s stream of cash flow. This article helps readers understand how swaps work in the self-storage business, and explains the attributes of this financial product. ...More
Education and Event Program Unveiled for Inside Self-Storage Las Vegas Expo 2011
Details of the agenda and education program for the Inside Self-Storage World Expo in Las Vegas, March 14-16, have now been posted to the event website at www.insideselfstorageworldexpo.com. The self-storage industry’s largest conference and tradeshow will include more than ...More
Burlington Self Storage Receives $8M in Permanent Financing
Burlington Self Storage in Burlington, Mass., received $8 million in permanent financing. The new loan replaces a maturing conduit loan. ...More
1099 Reporting Requirement: A New Compliance Problem for Self-Storage Operators?
The Form 1099 requirement could have two potentially negative impacts on your day-to-day self-storage operation. ...More
Inside Self-Storage Releases 2011 Factbook: Industry Compendium of Info
Inside Self-Storage (ISS) has released its 2011 Factbook, a comprehensive collection of articles addressing the complete self-storage experience, from the initial stages of development and finance through the nitty gritty of facility operation. ...More
Self-Storage Now Qualifies for Small Business Administration Loans
Finding money to buy or build self-storage has been a challenge in recent years, but the U.S. Small Business Administration (SBA) is providing hope to independent owners and investors. Due to recent changes in the SBA’s loan guidelines for passive-income properties, ...More
Cushman & Wakefield Releases 2010 Self-Storage Investor Survey
Cushman & Wakefield has released the results of its 2010 Self-Storage Investor Survey in a report titled "Resilient Asset Class Gains Traction." The valuation and advisory publication expands on results found in reports such as the Korpacz Investor Survey, published ...More