Financing insights / 17
Self-Storage Acquisition, Construction & Refinance Loans
MDN Capital Consulting helps self-storage owners, investors and developers evaluate financing for acquisitions, construction, expansion, conversions, lease-up, refinancing and value-add business plans.
At a glance
MDN Capital Consulting helps self-storage owners, investors and developers evaluate financing for acquisitions, construction, expansion, conversions, lease-up, refinancing and value-add business plans.
Financing overview
Financing at a Glance
What Do Self-Storage Lenders Evaluate?
- Occupancy
- Unit mix
- Rental rates
- NOI
- Historical operating performance
- Local supply and demand
- Property condition
- Expansion potential
- Sponsor experience
- Loan-to-value and loan-to-cost
- Business and exit strategy
Financing a Property During Lease-Up
A newly built or recently expanded facility may not yet satisfy conventional stabilized-debt requirements. Bridge financing may provide time to increase occupancy and operating performance before longer-term refinancing.
Hypothetical example
Illustrative Scenario — Self-Storage Lease-Up
A sponsor completes a new storage facility that is 55% occupied and performing according to its lease-up plan. A bridge lender may evaluate current value, occupancy trajectory, sponsor, market and projected stabilization.
Illustrative only. Financing and terms depend on lender underwriting.Borrower questions
Frequently Asked Questions
Can I finance a self-storage acquisition?
Yes, subject to normal underwriting.
Can I obtain financing during lease-up?
Potentially. Transitional bridge financing can be used for certain non-stabilized properties.
Can a lender finance an expansion?
Potentially, depending on existing operations, expansion costs, approvals and projected performance.
Can I refinance and take cash out?
Potentially, subject to value, existing debt, cash flow and lender leverage requirements.
Financing inquiry
Have a Self-Storage Transaction?
MDN Capital can evaluate acquisition, development, expansion, bridge and refinance requirements.