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.
Major Construction Loan Secured for 1,038-Unit Self-Storage Project in Homestead, Fla.
A $14.5 million construction loan has been arranged to build a large self-storage facility at 1995 N.E. 8th St., Homestead, Fla. The financing covers development of a 1,038-unit Extra Space Storage property totaling about 135,800 square feet. The loan runs for five years, was placed through a local bank, and was arranged by a national capital firm’s Miami office representative.
Key deal terms and parties
The borrower on the deal is an undisclosed self-storage developer. The loan carries a floating interest rate and is underwritten as 250 basis points above 1-month SOFR for the first three years. Payments are structured to allow 36 months of interest-only before principal amortization begins. The transaction was arranged by a capital markets representative working from the Miami office of the brokerage’s capital division.
Project details and location
The new facility will operate under the Extra Space Storage brand and will be located in Homestead, about 32 miles south of Miami. The property’s footprint and unit count position it among larger self-storage developments in the South Florida market, offering a mix of unit sizes to serve residential and business customers in the area.
Why the financing structure matters
The floating rate tied to 1-month SOFR plus a 250-basis-point spread aligns the loan with short-term cost of funds and market rate movements. The three-year pricing collar and 36 months of interest-only payments provide the developer with breathing room during the initial lease-up and construction period, helping keep near-term cash flow needs lower while the facility is being built and rented.
Local development context
The Homestead area has several active projects. Separately, a nearby mixed-use community site secured a major construction loan to support a residential component of a new development called Soleste Midtown. That financing totals $64 million and covers the residential portion of a 21-acre development planned to include 354 luxury garden-style apartments plus roughly 43,000 square feet of commercial space. The residential plan calls for six five-story buildings, a 7,000-square-foot clubhouse, a pool, a children’s playground, and six commercial outparcels fronting the main road.
Who is building and who will run the properties
The self-storage facility will operate under the Extra Space Storage brand. The larger Soleste Midtown project will have its commercial portion developed by a local builder, while the residential buildings will sit toward the rear of the site and are intended to create a pedestrian-friendly, mixed-use setting with easy access to nearby retailers and services.
Market signals and industry events
Industry organizers have scheduled a string of events covering retail, industrial, office, and multifamily sectors, as well as specialized meetings focused on net lease strategies, multifamily markets, industrial investment in regional markets, healthcare real estate in the Southeast, and seniors housing across the Northeast and Mid-Atlantic. These gatherings will examine investment and development trends, capital availability, and operational challenges such as improving occupancy in seniors housing. Networking receptions with light food and drinks are part of several events to facilitate deal-making and capital introductions.
What this means for the local market
The construction loan for the storage facility and the separate large loan for Soleste Midtown reflect lender willingness to finance projects that serve growing South Florida demand. Storage facilities often perform as adaptive assets in tight housing markets, while mixed-use residential projects aim to meet apartment demand and bring commercial activity to developing corridors. Both types of projects may attract regional capital seeking yield and local teams able to deliver on construction and leasing plans.
Next steps and timing
Construction of the self-storage facility will proceed under the terms of the five-year loan. The Soleste Midtown project was reported to be slated to begin construction later in the year, with commercial and residential phases organized to allow staged delivery. Stakeholders and market watchers will look for building permits, construction start notices, and leasing or preleasing announcements as next milestones.
FAQ
What is the size of the new self-storage project?
The project will include 1,038 units and about 135,800 square feet of storage space at 1995 N.E. 8th St. in Homestead.
How much financing was arranged and who arranged it?
A $14.5 million construction loan was arranged by a capital markets representative operating out of a Miami office. The loan was placed with a local bank and the developer was not publicly identified.
What are the main loan terms?
The loan is a five-year facility with a floating rate underwritten as 250 basis points above 1-month SOFR for the first three years and includes 36 months of interest-only payments.
Who will operate the storage facility?
The facility will operate under the Extra Space Storage brand.
What other development activity is nearby?
A separate project, Soleste Midtown, obtained a $64 million construction loan for its residential component and plans 354 apartments plus about 43,000 square feet of commercial space on 21 acres in Homestead.
Are there industry events related to these markets?
Yes. Events focusing on net lease investment, multifamily trends, industrial acquisitions, healthcare real estate in the Southeast, and seniors housing are being held to discuss investment strategies, capital access, and market performance.
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Key Features at a Glance
| Item | Details |
|---|---|
| Project type | Self-storage facility (Extra Space Storage) |
| Address | 1995 N.E. 8th St., Homestead, Fla. |
| Unit count | 1,038 units |
| Size | About 135,800 square feet |
| Loan amount | $14.5 million |
| Loan term | Five years; 36 months interest-only |
| Rate structure | Floating; underwritten as 250 bps above 1-month SOFR (first three years) |
| Arranger | Capital markets representative from a Miami office |
| Borrower | Undisclosed self-storage developer |
| Nearby major project | Soleste Midtown — 354 apartments and ~43,000 sq ft commercial; $64M residential construction loan |
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
Author: Construction NY News
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