Storage, hospitality, student
Specialty assets
Self-storage, limited-service hospitality and purpose-built student housing.
These three share one property: the income is operational rather than contractual. Nobody has a five-year lease on a storage unit or a hotel room, so the underwriting looks less like real estate and more like a small business with a building attached.
What this programme covers
- Self-storage: climate-controlled and drive-up, single site and small portfolio
- Limited-service and extended-stay hospitality with a recognised flag
- Purpose-built student housing within walking distance of campus
- Higher coverage and debt-yield floors than the core classes, because the income turns over daily
Debt yield, and by a distance. These assets carry the highest floors on the sheet.
Test it on your numbersWhat underwriting actually reads
Storage
Unit mix, occupancy by square foot and by unit, street rate against existing-customer rate, and the supply pipeline inside a three-mile radius.
Hospitality
Occupancy, average daily rate and revenue per available room against the competitive set; the franchise agreement term; and the property improvement plan the flag will require.
Student housing
Pre-leasing velocity for the coming academic year, distance to campus in walking minutes, parent guarantees, and university enrolment trend.
Management
For all three, the operator matters more than the building. A specialist third-party manager materially changes the file.
Who it suits
- Storage owners adding a second or third site
- A flagged hotel refinancing after a completed PIP
- Student housing with an established pre-leasing record
- Not this programme: Unflagged independent hotels, and storage facilities with no climate control in markets that demand it.
Illustrative scenarios in this class
- S-08 — illustrativeTwo-site storage portfolio$4,792,000 · Debt yield bindsA 13% floor holds this to 53.8% LTV. Storage income reprices monthly, and the floor exists precisely because it can.
Questions on this programme
Why are the floors so much higher?
Because income can reprice in a month. A storage facility whose street rate falls 15% has a new NOI immediately, where an office building with five-year leases does not.
Do you lend on a hotel mid-PIP?
That is a bridge structure with the property improvement plan funded inside the budget, not permanent debt.