Live Oak Bank Launches Self-Storage Lending Division

Live Oak Bank has launched a lending division for self-storage developers, investors and owners nationwide. The bank offers financing for acquisitions, expansions of existing facilities, new construction, refinancing of current debt, and renovation, according to a company press release.

The division will be led by Terry Campbell, who has more than 20 years of experience in the self-storage industry. Most recently, he was vice president of sales and marketing and executive vice president for BETCO Inc., a manufacturer of self-storage buildings.

“I’m thrilled to join the team at Live Oak, a bank that truly understands the need for financing in this space,” said Campbell, domain expert. “Over the last 20 years, I’ve seen the growing need for a nationwide lending product for owners and operators in the industry. Live Oak’s loan structure, cash-flow credit orientation, speed and service differentiate us from other lenders in the space and position us to meet that demand.”

Self-storage borrowers have faced certain limitations with current financing terms, including five- and 10-year balloons and conservative guidelines, according to the release. Live Oak plans to fill a financing gap for those who are established in the industry with a strong cash flow but lack appropriate collateral to secure loans with conventional lenders. The firm is designated as a preferred lender by the Small Business Administration.

“Self-storage has been one of the fastest growing segments of the commercial real estate industry for almost 40 years,” said Kay Anderson, general manager of emerging markets. “With Terry leading the charge, we will focus on strategic partnerships and educating the industry on our lending programs to achieve success in this market.”

Founded in 2008, Live Oak Bank originally began lending to veterinarians and has since expanded into other healthcare-related industries and specialty areas including self-storage. The bank provides small-business loans for acquisitions, new construction, refinancing and other real estate loans.