Self-Storage Business Loans and Development Financing
Self-storage is one of the most active asset classes in commercial real estate. Owner-operators and developers both have specific capital needs — from SBA acquisition financing to ground-up construction and permanent CMBS. PeerSense connects self-storage operators with the right capital sources.
Acquisition Financing
Multiple financing options for buying existing self-storage facilities — from SBA owner-operator loans to institutional CMBS.
SBA 7(a) for Owner-Operators
Owner-operators buying existing self-storage facilities can use SBA 7(a) financing. 10% down typical, 10-year fully amortizing, no balloon payment.
Learn MoreConventional & CMBS
Larger transactions and non-owner-occupied acquisitions. Non-recourse options available. 10-year fixed rates for stabilized assets.
Learn MoreBridge Loans
Time-sensitive acquisitions or value-add transitions. Close in 2-4 weeks. Bridge to permanent financing after stabilization.
Learn MoreConstruction and Development Financing
Ground-up self-storage development financing for experienced developers. $250K–$50M, up to 90% LTC on select programs.
Ground-Up Construction
New self-storage facility development from land acquisition through construction completion. $250K–$50M loan amounts.
Up to 90% LTC
Loan-to-cost ratios up to 90% on select programs. Experienced developers with strong track records may qualify for higher leverage.
Interest-Only Periods
Interest-only payments during construction phase. Convert to permanent financing or refinance after stabilization.
Bridge to Permanent
Short-term construction financing that transitions to permanent CMBS or conventional financing after lease-up and stabilization.
Developer Requirements
Construction financing typically requires demonstrated development experience, strong credit profile, and equity injection. First-time developers may need additional guarantees or lower LTC ratios.
CPACE for Energy Efficiency Upgrades
Self-storage facility owners can use CPACE financing for energy efficiency upgrades — solar, LED lighting, HVAC systems, and more. Non-recourse, no income documentation required, up to $50M.
Solar & Renewable Energy
Solar panels, battery storage, and renewable energy systems. Reduce operating costs and increase property value.
LED Lighting & Controls
Energy-efficient lighting systems with smart controls. Significant energy savings for 24/7 facility operations.
HVAC & Climate Control
Climate-controlled unit upgrades, HVAC system replacements, and energy management systems.
CPACE Key Terms
Up to 100% combined LTV when stacked with senior debt
Long-term fixed rate financing
No personal guarantee required
No tax returns or income verification required
CPACE sits behind senior debt and doesn't require lender consent in most states. It can fill the gap between your senior loan and the project cost.
Bridge Loans for Self-Storage
Short-term financing for time-sensitive acquisitions, value-add transitions, and lease-up periods. $1M–$10M, close in 2-4 weeks.
Time-Sensitive Acquisitions
Close in 2-4 weeks when conventional financing is too slow. Competitive bidding situations where speed matters.
Value-Add Transitions
Bridge financing while you improve occupancy, upgrade systems, or reposition the facility. Refinance to permanent after stabilization.
Lease-Up to Stabilization
Short-term financing for newly constructed or recently acquired facilities during lease-up period. Convert to CMBS or conventional after stabilization.
Buy Before You Sell
Acquire a new self-storage facility before selling your existing property. Bridge the timing gap without losing the deal.
CMBS Permanent Financing
Non-recourse 10-year fixed rate financing for stabilized self-storage assets. $1.5M and up, no cap.
Non-Recourse
No personal guarantee required. Lender's recourse is limited to the property collateral.
10-Year Fixed Rate
Rate certainty for the full term. No rate resets, no balloon payments, fully amortizing.
Stabilized Assets
For self-storage facilities with established occupancy and cash flow. Typically 75%+ occupancy required.
$1.5M Minimum
No maximum loan amount. Ideal for larger self-storage facilities and portfolio transactions.
CMBS vs. Conventional
CMBS (Conduit)
- Non-recourse structure
- 10-year fixed rate
- $1.5M minimum
- Stabilized properties only
Conventional
- Recourse or non-recourse options
- Flexible terms (5-25 years)
- Lower minimums ($500K+)
- More flexible underwriting
Frequently Asked Questions
Common questions about self-storage financing
Multiple options depending on your situation: SBA 7(a) for owner-operators (up to $8M, 10% down), conventional and CMBS for larger transactions ($1.5M–$50M, non-recourse options), and bridge loans for time-sensitive acquisitions ($1M–$10M, close in 2-4 weeks). PeerSense helps you identify which option fits your deal profile.
Ready to Finance Your Self-Storage Project?
PeerSense identifies the right capital source from our network of 500+ lenders, private equity firms, and institutional advisors — and makes the introduction. You get a straight assessment of where your deal fits and a direct connection to the source most likely to close it.
Whether you're acquiring an existing facility, developing new construction, or refinancing your portfolio, we'll connect you with capital sources that understand self-storage economics.
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