Finance

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.


  • Finance Workbook
    As most owners and developers of self-storage properties know, obtaining the right financing package can be confusing. You can simplify the process by understanding the different loan types and how to package your request. The majority of storage projects are financed by ...More
    February 1, 2007 Kenneth Hirsch and Rosemary Jensen Posted in Articles, Finance
  • Simply Self Storage Secures Another $100M in Equity
    OB Companies/Simply Self Storage, a diversified real estate developer that recently acquired a 48-property portfolio from EZ Storage, secured another $100 million of equity for 2007 purchases. ...More
    December 8, 2006 Posted in News, Finance
  • Buchanan Partners With RBC Capital Markets
    Buchanan Storage Capital joined forces with the Real Estate Mortgage Capital Division of RBC Capital Markets to provide commercial mortgage-backed securities for the self-storage industry. ...More
    November 27, 2006 Posted in News, Finance
  • Creative Debt Structures
    It’s still a borrower’s market. The best news is self-storage commercial mortgage backed securities (CMBS) hold one of the lowest default rates of all real estate asset classes including office, industrial, retail and multi-family. Lenders once considered self-storage ...More
    November 7, 2006 Joe Maehler and Scott Sweeney Posted in Articles, Finance
  • Over the River and Through the Woods
    During the old days, self-storage was little more than a ramshackle shed with a nice elderly person holding the keys ... but, this isn’t your grandma’s business anymore! Unless you’ve been living in one for decades, you know facilities emerging in the marketplace today are ...More
    November 7, 2006 Drew G. Whitney Posted in Articles, Finance
  • Car Wash Financing
    Children’s literature star Chicken Little, renowned for predicting the sky is falling, also moonlights as economist, pragmatist, accountant and loan officer. The diminutive alarmist isn’t referring to the literal sky but is forewarning us about the importance of fiscal ...More
    November 7, 2006 Fred Grauer Posted in Articles, Finance
  • Let There Be Cake
    Yes, you can have your cake and eat it too! Here’s how to cash out but keep the revenue flowing and equity growing in your self-storage business. If you stuff thousands of dollars under your mattress, it can’t earn you a penny. It’s similar to trapped equity. Many ...More
    November 7, 2006 Bill Walton Posted in Articles, Finance
  • Conduit Lending
    For self-storage, most of the long-term, fixed-rate financing (10 years or longer) is provided by the Wall Street “conduit” market also known as “securitized” lending. These loans are originated around the country collateralized by various property types, pooled together in ...More
    November 7, 2006 David Smyle Posted in Articles, Finance
  • Navigating the Mortgage Maze
    A major factor in the profitability and success of a self-storage facility is mortgage financing. Balancing your long and short-term goals can be tricky—but necessary. Here are some common questions and answers to guide you through the maze. What is the best type of ...More
    November 7, 2006 Anthony DiMarco and Gerard D. DiMarco Jr. Posted in Articles, Finance
  • Do Your Homework!
    I recently spoke with someone new to the industry who was certain he owned the best development site on the planet. When I asked about his feasibility study, he sternly told me his county was the “fastest growing in America,” all local competitors were completely full, and ...More
    November 7, 2006 Benjamin Burkhart Posted in Articles, Development, Finance