Progress Capital Arranges Fixed-Rate Construction Loan
2730 Airport Road, Ormond Beach, FL property owner lands a $9,400,000 Fixed-Rate Construction Loan, secured by Kathy Anderson of Progress Capital. Loan proceeds will be used for the construction of a 102,000 sf self-storage facility situated on 10.44-acres, featuring 705 units plus 63 RV/ boat parking spaces which will be managed under the Life Storage brand.
Terms include:
- Loan Amount: $9,400,000
- Interest Rate: 5.80% Fixed for the Term of the Loan
- Term: 7 Years (84 Months)
- Interest Only: 36 Months
- P&I: 48 Months
- Prepayment: 3-2-1, None Thereafter
Flagler and its surrounding counties continue to have a high demand for self-storage facilities. One driving factor points to downsizing. As older people downsize, they have more stuff than they have room for. Another factor lies in the explosive popularity of individuals within the 45-65 age range who are buying RV’s, campers and other recreational vehicles. As these individuals move closer to retirement, they are buying expensive motorhomes or RV’s and are willing to pay the storage fees in order to protect their investment.
The self-storage industry proves to be a lucrative one, as many economists and financial professionals deem it as “recession-resistant” due to the fact that demand remains steady, even during economic downturns.
As a commercial real estate advisory firm, Progress Capital can provide financing solutions to manage through the commercial real estate acquisition and/or financing process. Since 1990, Progress Capital has closed over $40 Billion in commercial loans and $150 Million in directly funded bridge loans.
