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.