Is the bulk of financing from local banks or conduit lenders?
B. Barnhill: Local banks have been the primary sources for financing new construction as well as acquisitions for self-storage in our area, followed by some life company loans for acquisitions of existing, well-performing properties. I haven’t seen any conduit lending recently in this area, although I have seen a number of conduit assumptions. Cerruti: Local banks and lenders are making up the majority of the financing in our area. Some life insurance companies are making low-leverage loans, say 65 percent, with excellent rates and terms, on good quality properties, if you are willing to take the low leverage. It is worth talking to a broker to learn more. Minker and Trahant: Most financing is through local lenders, self-storage mortgage brokers and, in some instances, cash buyers. Owens: I have seen more financing from local banks than conduit or life lenders. The recent drops in the discount rates have enabled local lenders to be more competitive than in years past. Do facilities in
