Extra Space Storage has seen incredible success with its Bridge Loan Program in 2020. Even amidst the uncertainty of COVID-19, the self storage company will close more than $200 million in bridge loans for storage facility owners and operators across the nation.
Launched in 2019, Extra Space Storage’s Bridge Loan Program complements its ManagementPlus solution by providing short-term loans to current and prospective third-party management partners on existing properties, regardless of property occupancy. The program lends up to 80% of the property’s value, allowing self storage owners and operators to retire a construction loan, recoup equity, or pay off capital partners.
Extra Space Storage launched the Bridge Loan Program to deepen its relationship with partners, further develop its third-party management platform, and place capital at an attractive risk-adjusted return.
The program is headed by Irena Edwards, Vice President of Lending & Investments. Since joining the company in August 2020, Edwards has taken the lead to help increase the pipeline of incoming deals, facilitate underwriting and closing processes, and find investors to purchase tranches of closed loans.
“2020 will be a record year for the bridge loan platform,” Edwards said. “As regular balance sheet lenders slowed down their lending due to COVID-19 uncertainty, we have seen an increase in our pipeline. A large portion of the volume is for our forward commitment option. Most banks are less enthusiastic about construction loans, especially for self storage projects. Being able to provide a take-out commitment at Certificate of Occupancy and transferring the lease-up risk to Extra Space Storage has helped borrowers secure construction financing.”
This unique lending program is yet another example of Extra Space Storage’s unmatched leadership within the industry. As the largest third-party self storage management company in the U.S., Extra Space Storage is constantly looking for opportunities to innovate.
“No one is approaching growth with the same unique, creative energy we are,” said Zachary Dickens, Executive Vice President of Investments. “We’re motivated to continue growing through our traditional three avenues: acquisitions, third-party management, and joint venture deals. Plus, we’re opening new avenues with fresh ideas like our bridge lending program, our net lease deal, and our preferred equity investments.”
Learn more about ManagementPlus and how we can help your self storage facility here.