SBOA: The Magazine 2015 Edition - Page 25

The BSC Group

A Year to Remember

2014 was a year to remember for commercial real estate borrowers, especially those in the self-storage sector. The year brought historic levels of liquidity on the debt and equity side of the capital stack leading to a multitude of borrowing options. Couple the liquid capital markets with investors’ insatiable appetite for self-storage assets, a lack of self-storage product, increasing demand, rising rents and strong cash flows and one is left with impressive valuations. All of this has led to an unprecedented time for self-storage owners. It is a borrower’s and seller’s market.

The question is what will 2015 bring? With an improving economy, plummeting energy prices, unemployment dropping and the Federal Reserve stopping it’s treasury purchases, 2015 may be the year we start to see interest rates trend up. However, rising rates has been a favored topic in boardrooms and at cocktail parties for several years now, yet rates continue to remain low.

Regardless, in 2015 the window to sell at historic highs and borrow at historic lows will remain open at least for a while. Here is a look at your lending options going into 2015:

CMBS Loans

• Fixed Interest Rates 4.25% and Up
• 5, 7, 10, 15 and 20 Year Terms
• Up to 30 Year Amortization
• Min. Debt Yield 8.00%
• Up to 75% LTV/LTC
• 80% of Purchase Price on Acquisitions
• Mezz Debt Available
• Non-Recourse
• Interest Only Periods Available
• Affordable Fixed Cost Programs

Special Development Program

• 90% of Cost
• Participating Debt
• Interest Only
• 6 Year Term
• 5% Developer Fee Paid at C of O
• Non-Recourse
• Fixed Rate

SBA Loans

• SBA 504 and 7a Programs
• Fixed and Variable Rate
• 3, 5, 7 and 10 Year Terms
• Up to 85% LTV
• 1.25x DSCR
• Secondary and Tertiary Markets
• Preferred SBA Lenders - Expedited
• Processing and Close

Sale at C of O

• Binding Sale Agreement Needed
• 80% - 85% of Cost
• Sub 4% Interest Rate
• Interest Only
• Non-Recourse

Insurance Agency & Balance Sheet Loans

• Loan Amounts $1MM and Up
• 5, 7,10, 15 and 20 Year Terms
• Fully Amortizing Structures Available
• Up to 75% LTV
• Rates Starting at 3.25%
• 30 Year Amortization
• Non-Recourse
• Interest Only Available

Credit Union Loan Programs

• 5, 7 and 10 Year Fixed Rate Terms
• Rates 4.00% and Up
• Affordable Costs
• Flexible or No Prepayment
• Secondary Markets
• Loan Amounts 750K and Up

The BSC Group
(800) 605-7880
thebscgroup.com