Self storage bridge loans in Florida

What Florida means for a bridge lender

Florida is a judicial foreclosure state, so lenders plan for court timelines. Florida charges documentary stamp tax on notes and an intangible tax on recorded mortgages, which add to closing costs, and property insurance availability and cost, especially near the coast, is a major underwriting item.

Foreclosure runs through the courts, which usually takes longer and costs more than a power-of-sale process. Lenders that size loans on the property, not the borrower, price that time in: some reduce leverage, some ask for larger interest reserves, and some only lend in judicial states on stronger assets.

Self storage specifics

Review zoning for self storage use, since many cities limit where storage is allowed or require special approvals, and check state lien law requirements for handling delinquent units.

How self storage bridge loans are sized

Many asset-based bridge lenders lend around 60–75% of as-is value on self storage, with lower leverage for facilities in early lease-up, in markets with significant new supply, or with low economic occupancy. When the plan includes adding climate control, converting an existing building or expanding on the existing site, some lenders size to loan-to-cost with the total capped by stabilized value. Bridge lenders here do not fund ground-up construction.

What lenders will ask for

• Unit mix and rent roll with street and in-place rates
• Occupancy report showing physical and economic occupancy
• Trailing 12-month operating statement and month-by-month history
• Management software reports and delinquency report
• Ancillary income breakdown
• Capital, conversion or expansion budget

Full list and timeline on the self storage bridge loans page.