Backing Business: Bridge Loan Enables Self-Storage Real Estate Company Expansion

After funding the development of a 556-unit facility in Wall, New Jersey with 100% equity, this established First American Bank customer—a privately held, self-managed company specializing in the acquisition, development, management, and sale of self-storage facilities—sought a $10M bridge loan (73% LTC) to reimburse themselves.

First American Bank provided a four-year floating rate loan with interest-only payments, along with three separate extension options. Our lending specialists were also able to offer the borrower limited guarantees and a swap option, which would enable the potential for a fixed rate if exercised.

Despite a complicated loan structure, the borrower’s long-standing relationship with our bank allowed quick approval, and for the borrowers to keep capital on hand. In the end, our creativity and quick action bolstered a strong client relationship while facilitating investments in other projects.