Life Company Loans
Self Storage Financing Offered by Life Companies
Life Company Loans for Self-Storage Properties
Life companies are often the most competitive option for larger balance ($10 million or more) commercial real estate loans for properties including office buildings, retail centers, single-tenant retail, and — most importantly — self-storage facilities. As an alternative to GSE financing options, life companies generally focus more on the highest class and quality assets and therefore are very selective when it comes to underwriting a loan. These financing vehicles are provided by one, or a group, of life insurance companies.
2022 Commercial Mortgage Terms for Life Company Loans
Minimum Loan: $2 million
Term: 10 to 25 years
Leverage: Up to 75% LTV
Amortization: 25 years
Minimum DSCR: 1.25x
Recourse: Nonrecourse options available (with standard carve outs)
Prepayment: Penalties assessed, regular or soft step downs possible
Competitive interest rates
Long loan terms
Larger loan sizes allowed
Early rate locks often available
Comparatively low LTV allowance
Difficult to get loans on non-premium real estate
Often requires a hard cash down payment