Gantry Secures $8M for Utah Storage Facilities
Storage Corner Group received the 7-year, fixed-rate loans for two properties in Salt Lake City and St. George, Utah.
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Storage Corner Group has received $7.7 million of permanent financing for two self-storage facilities totaling 135,000 rentable square feet in Salt Lake City and St. George, Utah. Gantry, representing the borrower, secured the seven-year, fixed-rate loans with an upfront interest-only period through the firm’s correspondent life company lenders.
The financing deal includes Uptown Storage, a 60,000-square-foot facility at 463 S. 600 W. in downtown Salt Lake City. The facility features climate- and non-climate-controlled units ranging from 25 to 360 square feet with hallway and drive-up access.
The St. George facility, called Central Storage & Business Park, is located at 1330 W. Sunset Blvd., roughly 4 miles from the city’s downtown and within half a mile of Home Depot. The property has business storage options featuring climate- and non-climate-controlled units ranging from 25 to 300 square feet. Central Storage also includes warehouse flex space for light manufacturing, warehouse distribution, or retail use.
Business Storage Drives Demand
Demand for business storage options has increased considerably during the pandemic, as some of the smaller businesses got squeezed out of the industrial market due to limited space and climbing rents. As a result, this heightened demand is one of the major factors driving self-storage growth.
The sector continued to experience strong rent increases on a national level, with overall street rates for 10x10 units increasing a whole dollar to $147 as of May, according to Yardi Matrix. On a year-over-year basis, self-storage rents grew 3.5%, though this figure marks a 150-basis-point drop compared to the April year-over-year figure. While this indicates notable rent growth deceleration, the sector’s fundamentals remain strong compared to the asset’s performance over the long term.
Related Questions
What are the benefits of securing financing for self-storage facilities?
The main benefit of securing financing for self-storage facilities is that it allows you to purchase the property without having to use all of your own capital. This can help you to diversify your investments and reduce your risk. Additionally, financing can help you to take advantage of lower interest rates and longer terms, which can help you to save money in the long run.
For more information, please see this article on self-storage investing.
What are the risks associated with financing self-storage facilities?
The main risks associated with financing self-storage facilities are the same as with any other type of real estate investment. These include the risk of defaulting on the loan, the risk of market fluctuations, and the risk of not being able to rent out the units. Additionally, self-storage facilities are often subject to zoning regulations, which can limit the potential for growth and profitability. For more information, you can read this guide to self-storage investing.
What are the most common financing options for self-storage facilities?
The most common type of loan used to finance a self-storage investment is a conventional loan from a bank, credit union, or other financial institution. These loans tend to have the lowest interest rates and the longest terms, making them a good option for investors who are looking for stability. Other financing options for self-storage facilities include SBA loans, private equity, and crowdfunding. For more information, please see this article from Commercial Real Estate Loans.
How can I find the best financing option for my self-storage facility?
The best way to find the best financing option for your self-storage facility is to compare the different loan products available. Conventional loans from banks, credit unions, and other financial institutions tend to have the lowest interest rates and longest terms, making them a good option for investors who are looking for stability. However, they can be difficult to obtain if you don't have a strong credit history. SBA loans are also a good option, as they offer lower interest rates and longer terms than conventional loans. Additionally, they are easier to qualify for than conventional loans. Finally, you may also want to consider private financing, which can provide more flexible terms and faster funding than traditional loans.
For more information on the different loan products available, please visit this guide to self-storage investing.
What are the advantages of using Gantry for financing self-storage facilities?
Gantry offers a variety of loan products for self-storage facilities, including long-term fixed-rate loans, adjustable-rate loans, and bridge loans. The advantages of using Gantry for financing self-storage facilities include competitive interest rates, flexible terms, and fast loan processing. Gantry also offers a variety of loan products tailored to the specific needs of self-storage investors, such as loans for drive-up, single story properties; modern multi-story properties; climate controlled properties; and even specialty properties (storage for cars, boats, wine, and documents). To speak with a commercial mortgage banker, email us today at [email protected].
What are the qualifications for securing financing from Gantry for self-storage facilities?
The qualifications for securing financing from Gantry for self-storage facilities depend on the type of loan you are looking for. For SBA 7(a) loans, you must have relevant business experience and other strengths to get your lender’s support. If you’re already a self-storage owner, good credit and a stellar track record can make you a shoe-in. For self storage property loans, we offer the most extensive portfolio of loan options for self storage properties including loans for drive-up, single story properties; modern multi-story properties; climate controlled properties; and even specialty properties (storage for cars, boats, wine, and documents). To speak with a commercial mortgage banker, email us today at [email protected].