Education

Navigating the Risks of Preferred Equity in Commercial Real Estate

The WSJ released an article highlighting that troubled mezzanine loans were the canary in the coal mine for commercial real estate.

How can Extra Space (NYSE: EXR) Raise its Same-Store Revenue Projections when Web Self Storage Rental Rates Decline?

Extra Space just raised its same-store year-over-year revenue growth projection to +2.75%-3.5%, up from +2.5%-3.5%. Compare this to the year-over-year published web rates, down -13%. Therein lies the magic of self storage. Leases are all month-to-month,...

Analyzing Commercial Real Estate Lending Amidst Market Shifts

On October 31, 2023, the Wall Street Journal published an article titled “Commercial Real Estate Lending Slows Down”. Click here to read the online article re-titled “The Money Has Stopped Flowing in Commercial Real Estate."

Unique Times for Commercial Real Estate Banking

Soliciting feedback from our peers in commercial real estate private equity, we confirm our belief that very few transactions are occurring. The headwinds are strong.

Is Seller Financing Creating Buying Opportunities in Value-Add Self Storage?

Based on recent broker feedback, around 50% of all current value-add self storage acquisition opportunities offer the buyer some component of owner financing. This financing structure was unheard of just a couple of years ago when bank financing was...

Understanding Investment Structure & Returns in a Self Storage Investment

Sophisticated investors appreciate that not every real estate deal is the same, and not even every self storage deal is the same. It is crucial for investors to delve into the details, assess risks, and comprehend the long-term plan behind each project....

Navigating Real Estate Debt Challenges in the Self Storage Market

The availability of real estate debt has become a major headwind impacting the industry. Many real estate developers encounter difficulties when attempting to secure construction debt from banks. What is at the root of the concern, and how is the self...

Investing In Self Storage - Why Now?

One of the most common questions we get is “Why is now the right time for a self storage development fund?” The “now” is always emphasized, a reference to the headwinds of a pandemic, recession, election year and the enormous disruption we are all...