Debt Product Overview
Debt Product Overview
By Shawn Hill
Is the inevitable finally happening? Can all those talking heads on the
financial media outlets finally be right? Are interest rates starting to
bounce from historic lows and begin their long-awaited climb upwards?
The BSC Group doesn’t have the answer, but what we do know is that
treasury yields are up significantly over the past six months. On January
26, 2015, the Ten-Year Treasury closed at 1.68%. Today, on June 10,
2015, it sits at 2.41%; a climb of 73 basis points or 0.73%. As we enter
the summer, there is a tremendous amount of uncertainty due to global
forces, namely Greece defaulting on their bonds, leading to volatility in the
capital markets. Even with this unrest and volatility there are still many loan
programs available for self-storage owners. Below is a matrix that outlines
your lending options going into the second half of 2015.
CMBS Loans
Special Development Program
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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
SBA Loans
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SBA 504 and 7a Programs
Fixed and Variable Rate
3, 5, 7 and 10 Year Terms
Up to 95% LTV
1.25x DSCR
Secondary and Tertiary Markets
Preferred SBA Lenders - Expedited
Processing and Close
In