SSSE’s core values are Fun, Integrity, Drive, and Others-First. As part of our commitment to Others-First, we strive to educate our investors, partners, and the general public about self storage. The Roman philosopher Seneca once said, “Luck is what happens when preparation meets opportunity”. This Frequently Asked Questions page is to serve as preparation for anyone interested in learning more about self storage and SSSE. The opportunities come when you sign up for SSSE’s investors list or buyers list by clicking the links in our menu bar. We hope to be lucky enough to work together.
If there are any questions that you have that are not answered below, please contact info@ssse.com
What are life company loans for self storage?
For stabilized storage assets, life company debt can be attractive—but selective.
Life company storage loans often target $10 million-plus loans, 50 percent to 65 percent LTV, DSCR of 1.40x or better, and competitive spreads over Treasuries or swaps. These lenders stress cash flow, cap rates, management quality, market stability, and asset quality. For borrowers, the tradeoff is usually lower leverage but potentially attractive long-term fixed-rate capital. That can be valuable for a stabilized facility where the goal is durable cash flow instead of maximum proceeds. Often life-co loans are assumable so if interest rates rise, the loan itself can become a valuable element of the overall storage investment when going to sell.
Why is construction financing harder than it looks?
Building self storage is simple to describe and hard to finance.
The 2026 Self Storage Almanac cites Yardi projections that new deliveries decline from nearly 57 million NRSF in 2025 to about 46 million in 2026 and roughly 42 million in 2027. It also notes that oversupply in some markets, rent volatility, and tighter credit have made construction financing harder. Lenders are scrutinizing sponsors, feasibility studies, budgets, rents, competition, absorption, and stabilization timing. Many construction loans are lower-leverage, floating-rate structures. A strong site is not enough. The sponsor must prove the project can lease, refinance, and survive rate volatility. We used to get construction loans at around 85% leverage. Now we are seeing 65% leverage on the high end for construction financing.