The Improved Lending Market for Private Investors
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by admin
- March 21, 2015
- Market Monitor, What We're Reading
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Small and mid-sized investors have been very active in the self-storage space recently. This is evident as Argus has transacted more sub-$5M deals over the last 6 months than any other period in our 21 year history of brokering self storage transactions. No longer an afterthought in the industry, lenders are taking this segment of smaller deals more seriously. With more than 75% of the total self-storage transactions in the U.S. being less than $5M, this portion of the industry presents the greatest opportunity for investors to capitalize on the robust self-storage fundamentals that are present in today’s market.
The highly entrepreneurial nature of the small to mid-sized investor has provided an opportunity for local and regional lenders to capitalize on oversized debt yields and debt service coverage ratios. In the past, in order to fulfill their lending needs, these small and mid-sized investors were forced to look to local commercial banks that had little to no understanding of the self-storage industry……
