Andover Properties Launches Self-Storage Lending Division

Andover Properties LLC, which operates the Storage King USA brand, has launched Andover Storage Lending (ASL), which will originate nonrecourse financing for self-storage sponsors nationwide. The new program provides bridge and construction financing for up to 90% of value without requiring third-party management or bank deposits, according to a press release.

“Our storage-lending program marks the continued growth of Andover Properties. We are excited to leverage our 20-year track record and storage-sector expertise to thoughtfully deploy capital on behalf of our investors,” said Brian Cohen, CEO and president of Andover Properties.

ASL made its first loan to Madison Capital, which operates the Go Store It Self Storage brand, to refinance a Richmond, Virginia, facility. It expects several other loans that are in negotiation to close during the second quarter, the release stated.

“We are thrilled to have Madison Capital | Go Store It as our first borrower,” said Zach Harding, chief investment officer of Andover Properties. “As local and regional banks continue to pull back from real estate financing, we look forward to partnering with more self-storage owners as their go-to capital provider for non-recourse bridge or construction financing.”

Established in 2003, New-York based Andover Properties focuses on alternative real estate asset classes such as car washes, manufactured housing, RV parks, self-storage and small-bay industrial. It owns and manages 162 storage properties in 18 states.

Source: Andover Properties, Andover Properties Announces Andover Storage Lending