CHICAGO—The self-storage sector has been recording big gains in occupancy and revenue for several years, boosting its appeal among investors and lenders. And Aries Capital, a national real estate mortgage and investment banking firm in Chicago, has just joined the Self Storage Association, bringing members increased access to institutional, non-recourse permanent debt and bridge loans.

Aries specializes in securing non-recourse, 10-year, fixed rate, permanent debt for cash-flowing properties through institutional lenders beyond a borrower's local bank. Unlike a bank loan, non-recourse loans are secured by the property only and don't require a banking relationship or the burden of personal guaranties. This method of financing also allows higher leverage and may include closing cost reductions or credits back.

“We are increasing our focus on self storage, but we are not new to this segment,” says Eric Jones, vice president at Aries Capital. “We've successfully closed transactions on behalf of self storage clients and also own self storage facilities ourselves. In fact, Aries is currently working on an adaptive re-use project in the Chicago suburb of Mount Prospect, which will create a three-story, 657-unit self storage facility.”