Homestead, Florida, September 27, 2025
News Summary
Marcus & Millichap Capital Corp.’s Miami office arranged a $14.5 million construction loan to finance a 1,038-unit Extra Space Storage development at 1995 N.E. 8th St. in Homestead, Florida. The planned facility will total about 135,800 square feet and be operated by Extra Space Storage upon completion. The five-year floating-rate loan was underwritten at a spread of 250 basis points above 1-month SOFR for the first three years and includes 36 months of interest-only payments. The borrower is an undisclosed self-storage developer. The deal adds institutional-scale storage capacity to South Florida’s development pipeline.
MMCC Arranges $14.5M Construction Loan for 1,038-Unit Extra Space Storage Facility in Homestead, Fla.
A construction loan of $14.5 million has been secured for the development of a large self-storage facility in Homestead, Florida. The financing was arranged by Marcus & Millichap Capital Corp. (MMCC) through a local bank and is structured as a five-year loan for an undisclosed self-storage developer. The loan features a floating interest rate underwritten at 250 basis points above 1-month SOFR for the first three years and includes 36 months of interest-only payments.
Project snapshot
The project will be operated under the Extra Space Storage brand and is located at 1995 N.E. 8th St., Homestead, Fla. Homestead sits about 32 miles south of Miami. The planned facility will contain 1,038 units across roughly 135,800 square feet.
Financing and terms
The loan was brokered by MMCC’s Miami office, with Robert Bhat representing the firm on the transaction. The five-year construction loan was placed with a local bank and underwritten with an initial floating spread of 250 basis points over 1-month SOFR for the first three years. The financing includes a three-year interest-only period, which is designed to ease cash flow during the core construction phase.
Why it matters
The size of the project and the scale of the loan underscore continuing investor and lender interest in self-storage as a real estate sector, especially in fast-growing South Florida markets. The financing package’s floating-rate structure and prescribed interest-only window are typical for construction loans of this type and reflect lender comfort with staged repayment tied to lease-up and stabilization.
Related multifamily and mixed-use activity nearby
A separate, larger residential construction financing transaction was recently completed nearby for a mixed-use community in Homestead. A Miami-based developer secured a $64 million construction loan from a regional bank for the residential portion of a 21-acre project known as Soleste Midtown. That project includes 354 luxury garden-style apartments, about 43,000 square feet of commercial space and community amenities such as a 7,000-square-foot clubhouse, a pool and a children’s playground. Construction for that development was expected to begin in December, with the commercial portion to be delivered by a local builder and six commercial outparcels planned along the main road frontage.
Developer pipeline and recent activity
The residential developer involved in the larger Homestead project operates multiple properties across South Florida. Its development pipeline includes thousands of rental units and tens of thousands of square feet of commercial space in various stages. The company has been active in securing construction financing for other projects across the region, supporting a steady cadence of new multifamily and mixed-use deliveries.
Industry events and market conversations
Several industry events scheduled across retail, industrial, office, multifamily and healthcare sectors will explore investment, development and financing trends. Sessions will include topics on improving market conditions in the NNN and sale-leaseback market, multifamily drivers in fast-growing Southeast markets, seniors housing strategies for occupancy and operations, and industrial acquisition and development in regional markets such as Salt Lake City. Networking components often include drinks and appetizers to facilitate casual, high-level conversations among owners, investors, developers and capital providers. Additional programming will examine creative experiences and partnerships shaping destination development for entertainment and place-based projects.
Context for lenders and developers
Construction financing in the current market routinely uses short-term floating rate structures tied to SOFR and includes interest-only windows to match construction and lease-up timelines. Local bank participation remains a key source of capital for mid-market projects, while developers continue to diversify capital stacks to balance rate and term risk with project timelines.
What comes next for the Homestead storage project
With financing in place, development activity is expected to move into vertical construction and site work. The interest-only period is intended to help the developer focus resources on building and leasing the asset before principal payments begin. Market observers will watch absorption, pricing and stabilization metrics once the facility opens.
Frequently Asked Questions (FAQ)
1. What is the value of the construction loan and who arranged it?
The construction loan totals $14.5 million and was arranged by Marcus & Millichap Capital Corp. through a local bank.
2. What will be built with this loan?
The funds will finance a self-storage facility with 1,038 units totaling about 135,800 square feet at 1995 N.E. 8th St. in Homestead, Florida.
3. What are the key loan terms?
The loan is a five-year facility with a floating interest rate underwritten at 250 basis points above 1-month SOFR for the first three years and offers 36 months of interest-only payments.
4. Who is the borrower and operator?
The borrower is an undisclosed self-storage developer. The facility will be operated under the Extra Space Storage brand.
5. How does this transaction fit local market activity?
It adds to a steady stream of new developments in Homestead and South Florida, alongside larger mixed-use and multifamily projects that have recently secured construction financing.
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Key Features Table
| Feature | Detail |
|---|---|
| Loan amount | $14.5 million |
| Loan term | 5 years |
| Interest structure | Floating rate; underwritten at 250 bps above 1-month SOFR (first 3 years) |
| Payment feature | 36 months interest-only |
| Property | Extra Space Storage self-storage facility |
| Units / size | 1,038 units; ~135,800 sq ft |
| Address | 1995 N.E. 8th St., Homestead, Fla. |
| Arranger | Marcus & Millichap Capital Corp. (Miami office) |
| Borrower | Undisclosed self-storage developer |
Deeper Dive: News & Info About This Topic
Additional Resources
- ReBusiness Online: MMCC secures $14.5M construction financing for self-storage project in Homestead, Fla.
- Wikipedia: Construction loan
- Bankrate: Small business farm loans
- Google Search: small business farm loans
- Multi-Housing News: The Estate Cos. lands construction loan for Miami-area project
- Google Scholar: construction loan Miami development
- NerdWallet: Farm grants (small business resources)
- Encyclopedia Britannica: self-storage (search)
- Missoula Current: Neptune Aviation grant
- Google News: Extra Space Storage Homestead