South End Capital Closes Another SBA 7(a) Self-Storage Facility Loan Deemed ‘Unbankable’ by Conventional Lenders

Boston-based lender navigates persistent obstacles to deliver previously unattainable financing for self-storage facility borrower.


Virtually no challenge was absent from this SBA 7(a) real estate loan request: subordination negotiation, debt ratio shortfall, collateral risk, prohibitive insurance, you-name-it.


Boston-based finance innovator South End Capital Corporation (SECC) has once again stepped up to the plate with a commercial finance solution no bank could bring home.


The borrowers were seeking a commercial mortgage on an NJ self-storage facility, plus working capital and closing costs. As far as the other lenders the borrower had approached were concerned, the barriers presented were insurmountable.


Once SECC was consulted, however, the whole picture changed for the concerned mortgage-seeker.


According to South End Capital’s Founder and Managing Director, Noah Grayson, “Virtually no challenge was absent from this SBA 7(a) real estate loan request: subordination negotiation, debt ratio shortfall, collateral risk, prohibitive insurance, you-name-it. But our team just doesn’t give up easily.”


For the $578,000 loan amount, details included:
    Refinance of a $624,000 first mortgage (SECC negotiated the subordination)
    $40,500 working capital and the balance to cover closing costs
    6% interest (2.75% + prime), amortized over 25 years and adjustable quarterly

“The hours we put in on tough transactions like this one would scare most lenders away,” Grayson declared. “But South End Capital is in the business of providing solutions that other lenders simply cannot offer to the marketplace. This closing and other recent SECC closings demonstrate just how well our uniquely structured programs are delivering.”


South End Capital Corp. works directly with borrowers and routinely with brokers, paying referral fees to its approved partners. To inquire about the many innovative programs available through South End Capital Corp., contact Joel Soforenko directly at (888) 268.7778 ext. 2 or joel@southendcapital.com