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Self Storage Building Loans
Nationwide Financing
Eligible Property Types:
Property Type:
Modern Self Storage buildings containing a minimum of 30,000 square feet of net rentable storage and
suitably zoned commercial locations. Strong preference for
properties located within planned industrial parks or CBD'S in cities where the office market
and office oriented employment characteristics are strong and occupancies are high. Preference
for suburban locations with good access and visibility.
Leasing:
Strong preference for properties located within planned industrial parks in cities where
industrial market is strong and occupancies are high. Self Storage buildings are required to
possess all functional requirements of accessibility, parking, loading, utilities, and fire
protection.
Property Age:
Facilities should have been completed and in operation for at least 12 months. Properties built
or substantially renovated since 1975 are preferred.
Loan Limits:
The loan-to-value ratio may not exceed 80%. The minimum debt service coverage ratio is 120%.
Lower coverage ratios may be accepted for facilities leased to credit-worthy tenants on a
long-term basis.
Occupancy Requirements:
Occupancy should be average for building size. The facility should be located in a market area in which
demand is expected to increase.
Borrowing Entity:
Generally, a single purpose entity is required
Loan Term:
5, 7 or 10 year terms are available at the borrower's option. Amortization will generally
be in the 15-25 year range, but some loans on new buildings could be amortized over 30 years.
Rates:
The interest rate is set at a fixed spread over comparable term treasuries, and varies based
on coverage ratios. Floating rates are also available. Please call for current rate and spread
quotes.
Fees:
The borrower is responsible for all closing costs and required reports (appraisals, engineering
and environmental reports, surveys, etc.).
Guarantees:
The loans are generally expected to be non-recourse except for normal lender carve-outs.
Assumable:
Yes, with consent and a 1% assumption fee.
Reserves:
Tax and insurance reserves are required. Also, a replacement reserve account is to be
established and funded to provide for capital replacements and re-leasing costs and rental
interruption.
Prepayment:
Prepayment will be prohibited for some period, depending on the term, and then be subject
to defeasance or yield maintenance until the final six months, during which prepayment is
allowed without penalty.
Use of Proceeds:
Loans are available for both purchase and refinance transactions.
©2010 brtfinancial.com - BRT Financial, Inc. All rights reserved.
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