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.


  • THE PAYMENT ADVISOR
    Payment these days isn’t as simple as handing over a fistful of dollars or even accepting any card offered. A self-storage operation needs to consider a number of factors when deciding what methods of payment it will accept, especially if it owns more than one facility. ...More
    March 1, 2007 Ross Federgreen Posted in Articles, Finance
  • NYSSA Hosts Finance and Real Estate Summit
    The New York State Self Storage Association will host a Finance and Real Estate Summit on March 1, 2007, at the Union League Club in New York City. ...More
    February 14, 2007 Posted in News, Finance
  • ALL ABOUT STORAGE
    We’ve all heard business success depends on location. But even the best perch in the world can’t promise a pot of gold. Achieving facility occupancies and financial goals takes planning. While nobody has a magical equation for self-storage, several known factors contribute ...More
    February 1, 2007 Cheryl Kelley Posted in Articles, Development, Finance
  • Hitting the Jackpot
    At some point, we probably all dream of winning a lottery jackpot. It’s hard not to imagine what we would do if we could cash in on such good fortune. Sounds like a dream. And for the overwhelming majority of us, winning the lottery is. But some self-storage owners may be ...More
    February 1, 2007 Neal Gussis Posted in Articles, Finance
  • How to Finance Your Self-Storage Property
    Most investors purchase self-storage for three reasons: cash flow, appreciation and tax benefits. Your goals will impact the kind of financing best for you. Cash flow is simply the gross revenue (rent) generated from the property minus operating expenses (insurance, taxes, ...More
    February 1, 2007 Matt Lexow-Gray Posted in Articles, Finance
  • NEWS
    Please submit your news releases to storagenews@vpico.com . Audit Gives Thumbs Up to Centershift’s Controls Centershift, a provider of web-based management software for the self-storage industry, successfully completed a Statement on Auditing Standards No. 70 (SAS 70), ...More
    February 1, 2007 Posted in Articles, Finance
  • 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