Storage construction lenders ask for a feasibility study that shows competing facilities, street rates, and how long the building takes to fill. They ask what the sponsor has leased up before. They do not price the facility off a nearby apartment cap rate, and they do not treat a climate-controlled mid-rise the same as a drive-up site in a growth suburb. The standing-facility page, once occupancy is real, is Phoenix self-storage. Until then, permanent credit is the wrong box.
Citywide construction context is Phoenix construction. The index is construction financing. Apartment construction, which is a different unit and a different program, is Phoenix multifamily construction. Agency debt does not finance storage. We are not a Fannie Mae DUS lender.
What to attach before a storage draw is discussed
The address, the unit mix, the feasibility study, the budget, and the sponsor's list of prior facilities with the occupancy they actually reached. If the site is in a suburb that is still adding houses, say which roofs are already there. A bank may fund a sponsor it already knows and pass on a first-time operator. A debt fund may fund the first-time operator at a lower advance. A life-company conversation waits until the facility is leased.
We will not quote a holdback, a coupon, or a loan-to-cost for Phoenix storage. Those are the lender's sheet.
No storage closing exists to move
The transactions list has no self-storage card in Phoenix or anywhere else. The Phoenix industrial loan is not a facility. We will not dress it up as one.
The arranger is in Scottsdale. The facility's city is whatever the deed says.
Capital for a new Phoenix storage facility
| Source | When it fits |
|---|---|
| Bank construction | Draws for a storage sponsor a bank will underwrite. |
| Lease-up capital | After delivery, before a permanent lender will take the occupancy. |
| Phoenix self-storage | The stabilized facility page. No storage tombstone. |
| Permanent takeout | Only after occupancy is real. Not during the build. |