Maximizing Self Storage Outcomes Through Bridge Loans
Extra Space Storage's Bridge Loan Program provides critical financing solutions for self storage owners during the lease-up phase, offering flexible terms, industry expertise, and integrated services that traditional banks can't match.
With more than 4,000 locations nationwide, Extra Space Storage is the largest self storage operator in the U.S.—putting us at the forefront of the self storage industry. Part of our continued growth is fueled by strategic investment, with our bridge loan program being a key part of that strategy. Vice President of Bridge Loans Jason Robinson and Senior Director of Bridge Loans Dylan Taylor discuss how our strategic bridge lending program addresses a critical industry need.
How the Extra Space Storage Bridge Loan Program Works
There are many options for property owners to secure financing for self storage facilities, either for construction or when the property is fully stabilized. However, once construction is complete, facility owners experience the lease-up phase—a period when the property is open but not yet fully occupied, and cash flow is still limited. Extra Space Storage recognized this need in the market and developed our Bridge Loan Program to help property owners navigate that financing gap.
“The goal of the bridge loan is to take a non-stabilized self-storage property and guide it to stabilization.” -Dylan Taylor, Senior Director of Bridge Loans
Our bridge loans are short-term loans that provide financing during this critical gap phase, helping self storage operators stabilize their facilities and retire their construction debt. Our program offers loans up to 80% loan-to-value (LTV) and includes interest and operating reserves, which help cover the property's daily operating expenses during the lease-up phase until the property is stabilized.
Why Partner with Extra Space Storage for Bridge Loans
Extra Space Storage is more than just a bridge loan lender. Unlike traditional banks, we have decades of expertise in the self storage industry, meaning that we understand the unique challenges and opportunities of these assets. This allows us to provide flexible financing and commit to long-term growth for self storage owners. And because we manage thousands of facilities across the country, we have access to proprietary data and revenue management tools that enable us to accurately value properties and tailor our financing solutions to fit specific needs.
“Extra Space is a pioneer in bridge lending. We’re the first publicly traded REIT to establish a bridge lending program. We've been offering bridge loans for about five years, during which time we've completed over $2.5 billion in bridge loans.” -Jason Robinson, Vice President of Bridge Loans
We also offer something that traditional banks can't—full integration with other Extra Space Storage services designed to support a property throughout its life cycle, including third-party management, acquisitions, and joint ventures. As properties approach the end of their loan term, Extra Space Storage is well-positioned to step in as a logical, experienced buyer—offering a seamless transition for owners ready to sell.
What Extra Space Storage Looks for in Bridge Loan Opportunities
When evaluating potential bridge loans, we strategically focus on properties within our management footprint, which spans across most major markets in the U.S. Additionally, we take demographic factors into account, like trade area population, income levels, and new self storage supply. These factors help us identify higher-quality assets that we might consider purchasing in the future.
Experience the Extra Space Storage Difference: Culture, People & Partnership
At Extra Space Storage, we believe in true partnership, which is why we refer to third-party owners as partners instead of clients. We're committed to the philosophy that when our partners succeed, we succeed.
“There's a saying, 'Culture eats strategy for breakfast,' and that describes Extra Space Storage perfectly.” -Dylan Taylor, Senior Director of Bridge Loans
That mindset is the driving force behind everything we do, from how we structure our loans to how we manage properties. Whether you have one property or 200, we have the resources, knowledge, and values to help you succeed. Our focus on culture provides the strong foundation that makes us more than just a lender, but a true partner in your success.
Article Contributors
Jason Robinson, Vice President of Bridge Loans
Jason Robinson is the Vice President of Bridge Lending for Extra Space Storage. Jason joined EXR in early 2024 and brings over 20 years of banking and commercial real estate lending experience to the EXR lending team. Prior to joining the EXR team, he worked for a large investment bank where he managed a team of commercial real estate loan underwriters and portfolio managers for the Wealth Management division. Additionally, he has worked as the Director of Portfolio Management and as a commercial real estate underwriter for a large US-based bank.
Dylan Taylor, Senior Director of Bridge Loans
Dylan Taylor is currently the Sr. Director of Investments and Lending for Extra Space Storage. Dylan joined EXR in 2015 on the Third-Party Management team, initially assisting large partners with the asset management of their portfolios. He subsequently moved to a role focused on growing the management platform, where he worked with external partners in assessing markets, underwriting existing and new development properties, and structuring and negotiating agreements. Along the way, he gained experience in joint ventures, bridge lending, and remote management stores.
Looking for self storage financing during your lease-up phase? As the largest self storage operator in the nation, Extra Space Storage can help take your property to the next level. Check out our Bridge Loan Program to learn more about how we can help grow your self storage business!
