Extra Space owns or operates 1,647 self-storage properties in 39 states
February 25, 2019: A publicly traded self-storage real estate investment trust (REIT) and third-party management firm Extra Space Storage Inc., has launched a bridge-lending program targeted at non-stabilized storage facilities.
According to financial website Investopedia, Bridge loans are often referred to as interim or gap financing. They’re intended to be used as a short-term solution until a person or company secures permanent financing or meets an existing obligation. Though they offer immediate cash flow, bridge loans tend to have relatively high interest rates and are usually backed by some form of collateral, such as real estate or inventory.
Extra Space has already issued some financing and loans in the pipeline. “The company entered the finance sector to fill “a capital void in the market and make some money. We’re getting very good reception in the marketplace, but we are just beginning. We’re going to walk before we run. We’re going to see how the market reacts to this, and I would not expect it to be a significant capital allocation in 2019.” Said by CEO Joe Margolis.
Extra Space owns or operates 1,647 self-storage properties in 39 states; Washington, D.C and Puerto Rico. Its properties comprise approximately 1.2 million units and 125.7 million square feet of rentable space.