Funding Purpose
Tauro Capital Advisors helped expand a self-storage development company by placing a construction loan for the development of 155 self-storage units in the Southeast U.S.
Property Description
The site is located near a major thoroughfare providing access to major urban areas.
Sponsors
The sponsors are two experienced self-storage developers and operators with over 30 years of experience in building and general contracting.
Challenges
- Closing timeline extended based on lender confusion with property type
- Lender uncertain about self-storage risks
Solutions
- Tauro sourced a cost consultant to get a fair appraisal for desired loan amount and terms
- Tauro analysts researched the market to find proforma rents are more than attainable with a growing interest in the product type post-Covid
Funding
- Loan-to-Value: 70%
- Interest Rate: UST3Y + 2.56% Fixed
- Amortization: 25 Years
- Term: 7 Years
- Interest Only: 24 Months
