Self-storage project in Plantation draws $8.1 million construction loan
The construction loan by a national bank illustrates the emergence of self-storage as an institutional asset class
A developer obtained an $8.1 million construction loan from a bank to build a self-storage facility in Plantation, illustrating new respect for self-storage as a real estate asset class.
Operating under the name Preferred Storage, the self-storage facility will span 101,533 square feet. The three-story facility will be built at 4589 West Sunrise Boulevard on a 4.2-acre site. Construction is expected to be completed by mid-2018.
Walker & Dunlop Inc. negotiated the $8.1 million loan to finance construction of the Plantation self-storage facility. The loan by a national bank has 10-year term, covering a 12-month construction period and three years of interest-only payments during a stabilization period.
“Self-storage properties were traditionally a mom and pop business, but it is now a growing institutional category of real estate,” David Gahagan, managing director of Walker & Dunlop, said in a prepared statement.
The Preferred Storage facility will be located on West Sunrise Boulevard between Interstate 95 and Florida’s Turnpike. The facility will feature 24-hour access to climate-controlled units, on-site management, video surveillance and free truck rental. — Mike Seemuth