This months featured funding is a ground up construction project for a self-storage facility located in Ludington, MI.
EDF's VP of Loan Operations, Gary Witkowski partnered with Steve Mitchell of Honor Bank to help him facilitate his first ever SBA 504 Loan.
Maple Leaf Self Storage was formed in 2017 and is owned by local attorney Ryann Embury. Project financing included the purchase of land and construction costs with a 50/30/15 structure. The borrower constructed three prefabricated steel storage buildings with 154 individual units encompassing 27,200 square feet of rental storage space. The units vary in size from 5' x 5" to 10' x 30".
The location is excellent and was very appealing to Ryann with 309 feet of frontage on Pere Marquette Road. Additionally, the facility is across the street from a 37 acre RV resort called Poncho's Pond, which is made up of 276 full hook-up RV camp sites.
This project is a good reminder for lenders that self-storage facilities are eligible under the SBA 504 loan program. SBA also considers these types of properties as multi-purpose. If you have an existing self-storage customer that is looking to expand or purchase a new location, your borrower does qualify for a 10% down payment. This, along with our 25 year fixed rate can be an excellent option for the borrower.
To learn more about the benefits of the SBA 504 Loan Program, or how
EDF can assist you, please contact us at 616-459-4825.