Almost a year after setting up shop, Jernigan Capital is ready to do business.
Founded in January by former CubeSmart CEO Dean Jernigan, the direct lending firm unveiled three loan programs for the self-storage industry on Nov. 13. Lending amounts range from $2 million to $15 million.
“We are pleased to offer these loan programs to the self-storage sector,” Jernigan, president of the firm, said in a news release. “As seasoned developers and operators now entering into direct lending, we understand the needs of the self-storage borrower and stand ready to meet those needs.”
Miami, FL-based Jernigan Capital is accepting loan requests, and term sheets are available for potential borrowers.
Our 90 percent non-recourse loan is a one-of-a-kind offering in our sector that has been extremely well received in the marketplace thus far.
— Dean Jernigan, president of Jernigan Capital
The loans are geared toward development, refinance or acquisition. Loans are offered at a 90 percent loan-to-value ratio for refinancing and acquisitions, and a 90 percent loan-to-cost ratio for developments. In most cases, the non-recourse loans offer six-year terms.
“Our 90 percent non-recourse loan is a one-of-a-kind offering in our sector that has been extremely well received in the marketplace thus far,” Jernigan said.
The firm’s offerings are an alternative to CMBS, insurance loans and traditional bank loans.
Greg Ward, recently hired as chief financial officer at Jernigan Capital, said the firm’s underwriting experience, self-storage expertise and direct lending model will enable “quick and efficient decisions to prospective borrowers.”