I have a master lease option on a wharehouse that’s zoned for storage units here in Phila, PA. The building is HUGE and empty and great to develop a self-storage facility.
I just wanted know how do I go about markting this to find a partner that would be willing to invest with me. All of my deals in the past have been residential flips.
I guess, my main question is: now that I have the MLO, what’s next???
Thanks. Any help will be appreciated
KH Shaw…
I have been involved in many development deals with some of the larger self storage companys from NYC.
You can do this deal two ways… Either go to one of the bigger franchises and see if they want to partner with you or work a deal and pay you a premium on the lease.
If you want to develop the self storage business yourself, the commercial loans out there are only lending at 65% ltv right now. So you would need to find investors to cover the rest… Now please keep in mind when I say 65% LTV, on a commercial loan you are going to have soft costs (architects, lawyers, planning and permitting fees, etc…) involved as well.
What alot of the larger companies are doing is securing the 65% ltv loans, finding one hard money investors who usually takes half of the 35% remaining monies and then they are getting 15-20 small investors to cover the rest.
I can steer you in the direction of architects that have designed self storage in urban environments in the past… just let me know.
In the end you can either set up a management company to run the daily operations or there are self storage management companies out there that will do it for you.
Urban markets are a little different as your two biggest bins rented are the 20x10 with roll up loading dock access (contractors, and businesses run out of storage bins) and the locker bin (5’x5’x3’ high— pretty much a closet)
Thanks drome 8
I would like if you can assist me with any info that you can!
Question: Can you point me in the direction of some of the large companies that would be interested? Thanks in advance.