Acquisition, refinance, cash-out, expansion and ground-up financing for self-storage facilities, climate-controlled buildings, boat and RV storage and conversions. SBA 504 and 7(a) up to 90% of project cost for owner-operators, conventional and CMBS to 80–85% of value, bridge capital for lease-up and conversions. UFIG is a commercial loan correspondent: we originate, underwrite and deliver your loan through our Correspondent Lending channel, and place it through our Capital Network when another lender offers better terms.
Self-storage has been one of the most reliable commercial property types for two decades, and lenders know it. The catch is that storage is underwritten on occupancy, rate per square foot, unit mix and management, not on leases, so a lender without storage experience either declines or prices it like a warehouse. The right lenders treat a stabilized facility like the income property it is and a lease-up or conversion like the business plan it is.
UFIG originates both. We underwrite the facility the way the lender will, choose the program that fits where the property is in its life, and manage the file with one loan officer from first call to closing.
Program guidelines of the placing lender; subject to appraisal, credit and lender confirmation.
Storage lenders underwrite the same handful of facts every time. Knowing them before you apply is the difference between a quote and a decline.
Lenders want 80 to 85 percent physical occupancy for permanent debt, and they look at economic occupancy after discounts and concessions, not the sign out front.
A unit-by-unit rent roll, street rates versus in-place rates, and twelve months of trailing revenue. Rising in-place rates on a stable base is the strongest signal there is.
Square feet of storage per capita in a three- to five-mile radius, and what is in the development pipeline. Overbuilt markets get lower leverage, not a decline.
A new build or a converted big box has no history. Bridge and construction lenders size to the as-stabilized value and the sponsor’s plan; the permanent loan comes once occupancy proves out.
Owner-managed, third-party managed or remotely managed with kiosks and gates all finance; the lender just wants to know who answers the phone and who sets the rates.
First facility or fifteenth matters. First-time owners qualify through SBA with management experience; experienced operators qualify for conventional and CMBS leverage and non-recourse terms.
Self-storage is eligible for SBA financing when the borrower operates the facility, and the 504 is usually the best fit: a bank first mortgage of 50 percent, a 20- or 25-year fixed-rate SBA debenture for up to 40 percent, and a borrower injection of 15 percent because storage is a special-purpose property (20 percent when the business is also a start-up). The debenture rate is set monthly and fixed for the life of the loan, currently in the high-6 percent range. The 504 also finances expansions, additional buildings and, under the 504 refinance program, existing debt.
A 7(a) can combine the facility, a business purchase, equipment such as gates, kiosks and climate systems, and working capital in one note up to $5 million per borrower, amortized over 25 years when real estate is more than half the use of proceeds. The SBA minimum equity injection on a change of ownership is 10 percent of total project cost. Variable rate at Prime plus 1.50 to 3.00 percent, or fixed with some lenders.
Banks, credit unions and life companies lend 65 to 75 percent of appraised value on stabilized facilities, on 5- to 10-year terms with 25-year amortization, priced off the 10-Year Treasury. CMBS conduit lenders take single assets from about $2 million and portfolios of any size on a non-recourse basis with 30-year amortization and interest-only periods, and they like storage. Both want trailing-twelve-month financials, a current rent roll and a sponsor with a track record.
A facility still filling up, a retail or industrial building being converted to storage, or a ground-up development is financed with a commercial bridge loan or a construction loan sized to 70 to 80 percent of cost, interest-only, 12 to 36 months, from $1,000,000. Once the facility reaches stabilized occupancy, a 504, conventional or CMBS loan takes it out at permanent pricing.
| Requirement | Stabilized Facility | Lease-Up / Conversion / Ground-Up |
|---|---|---|
| Loan amount | $500,000 to $25,000,000 | $1,000,000 and up |
| Leverage | Up to 90% SBA (owner-operated); 80–85% conventional and CMBS | 70–80% of total cost; 504 to 85–90% of cost for owner-operators |
| Financials | 3 years operating statements, trailing 12 months, current rent roll, occupancy history | Budget, feasibility or market study, absorption schedule, sponsor financials |
| Property | Unit mix, climate vs drive-up, rate per square foot, deferred maintenance | Plans, permits, contractor, site control; supply analysis for the trade area |
| Sponsor | Personal financial statement and returns; credit 680+; management plan | Storage or related development experience; liquidity for carry and overruns |
| Recourse | Recourse on bank and SBA; non-recourse on CMBS and life company | Recourse or completion guaranty; non-recourse with experienced sponsors |
| Timing | 45 to 60 days; SBA 45 to 75 | 60 to 90 days to first draw |
Guidelines of the placing lender, subject to change; UFIG confirms current terms with the lender before issuing a quote.
UFIG originates self-storage loans in all 50 states through its Correspondent Lending channel and a Capital Network of SBA Preferred Lenders, Certified Development Companies, storage-focused banks and credit unions, CMBS conduits, life companies and private capital. Texas, Florida, the Carolinas, Georgia, Tennessee, Pennsylvania, Ohio and Arizona are among the most active markets. Secondary and tertiary markets that the national lenders skip are financed through regional lenders that already know the trade area.
One loan officer, one file, no hand-offs. Here is how a self-storage loan moves from first call to the closing table.
The short form or a phone call. Tell us the property, the price or payoff, the occupancy and the rent roll.
Your loan officer confirms the program fit, the leverage you can expect and what the lender will need, before you sign anything.
We pre-underwrite the file, choose the execution path (our Correspondent Lending channel or the Capital Network lender whose credit policy fits) and deliver a written quote.
The same officer manages the appraisal, third-party reports, underwriting and closing.
Call during business hours to speak with a loan officer, or submit your facility for a 24-hour review. UFIG originates, underwrites and delivers your loan through its Correspondent Lending channel, or places it with the Capital Network lender that finances self-storage every month when that gets you better terms.
Self-storage loans, mini storage financing, climate-controlled and boat and RV storage financing in all 50 states, from $500,000, through SBA 504, SBA 7(a), conventional, CMBS, life company and bridge programs. UFIG originates, underwrites and places storage loans through its Capital Network, and also arranges SBA loans, gas station and car wash loans, commercial real estate loans and commercial bridge loans. Call (888) 556-4029.
