Construction Loan for Self Storage Facility in Houston, Texas
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Yieldi has successfully closed a $13 million construction loan for the development of a premium climate-controlled storage facility in Houston, Texas. The project is fully entitled and shovel-ready, with all permitting in place.
The borrower, an experienced developer familiar with the Houston market, identified strong demand for high-quality storage driven by population growth and undersupply in the region. This facility will be positioned as a Class-A, generation-five asset and is already flagged by top-tier operators such as Extra Space and Public Storage—enhancing both its brand value and long-term leasing outlook.
Despite broader market headwinds, particularly in smaller storage transactions, this deal stands out due to its institutional quality, strong sponsorship, and conservative leverage structure. With an LTV of just 50%, this investment reflects prudent risk management and a clear path to exit via refinance upon project completion.
This loan exemplifies Yieldi’s strategic focus on well-secured, high-potential real estate projects in resilient and growing U.S. markets.
Construction Loan for Self Storage Facility in Houston, Texas Details
Structure
- Tax Document
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BPDNx
SENIOR BPDN - PROMISSORY NOTE SECURED BY COLLATERAL SECURITY AGREEMENTTHIS PROMISSORY NOTE IS SECURED BY THE ISSUER'S PLEDGE OF THE RELEVANT UNDERLYING COLLATERAL LOAN (AS DEFINED BELOW) TO THE LENDER (AS DEFINED BELOW) UNDER THE COLLATERAL SECURITY AGREEMENT AND PROMISSORY NOTE. HOWEVER, EXCEPT TO THE LIMITED EXTENT PROVIDED IN THE PROMISSORY NOTE WITH RESPECT TO THE UNDERLYING COLLATERAL LOAN, THIS NOTE IS NON-RECOURSE TO THE ASSETS, FUNDS AND ACCOUNTS OF YIELDI, LLC (THE "BORROWER", "COMPANY" OR "ISSUER") OR ANY OF ITS AFFILIATES, EMPLOYEES, AGENTS, STOCKHOLDERS, PARENTS, OR SUBSIDIARIES EXCEPT TO THE EXTENT OF THE VALUE OF COLLATERAL LOAN NET PAYMENTS ACTUALLY RECEIVED IN RESPECT OF THE UNDERLYING BORROWER LOAN.
Example Return on Investment
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Why We Like This Opportunity
Construction Loan for Self Storage Facility in Houston, Texas Highlights
This state-of-the-art, climate-controlled self-storage facility will be built just 1,000 feet from Interstate Highway 69 in Houston, offering excellent visibility and direct access from a major transportation corridor. The project is designed to meet institutional standards, delivering a Class-A facility flagged by nationally recognized storage operators. The total development cost is approximately $20.46 million, supported by a $13.3 million construction loan and over $7.1 million in projected equity. Through strategic value engineering, the team has already reduced hard construction costs by $2 million. Permitting and entitlements are fully approved, and construction is expected to commence within 30 days.
About the Neighborhood
The facility is located within a rapidly growing submarket of Houston. Within a three-mile radius, there are currently no existing climate-controlled self-storage options—highlighting a significant supply gap in the area. Demand is driven not only by local residents, but also by customers coming in from surrounding communities seeking modern, secure, and climate-protected storage solutions. The site’s proximity to a major interstate enhances accessibility and long-term viability for lease-up and retention.
Why We Like this Opportunity
This investment represents an attractive combination of low leverage (50% LTV), high projected equity, and a strong, underserved market. The Class-A design, institutional branding, and excellent location align with Yieldi’s focus on quality, downside-protected opportunities. With entitlements secured, a clear path to construction, and an exit strategy through refinance upon completion, this deal offers strong fundamentals and the potential for stable long-term returns.
Experienced Borrower
The borrower is a successful real estate investor in high-end real estate industry in Florida. He’s sold multiple Florida homes for over $2M+ and has a high net worth and strong liquidity.Investment Summary Of Construction Loan for Self Storage Facility in Houston, Texas
Investors have an opportunity to invest in borrower payment dependent notes, the cash flow of which is dependent on the payment of interest and principal repayment on the Loans. Investors are scheduled to receive an annualized monthly interest payment of Login for details over the Loans' estimated remaining term of 12 Months. Principal is expected to be returned on or before maturity through a refinancing with a traditional bank loan. It is important to note that the Loans are eligible for prepayment, and principal may be repaid prior to the 12 Months estimated remaining term. If the Loans are paid off before maturity, investors are expected to receive at least three months of interest payments in addition to return of principal.
How Do I Get Paid?
This loan had an initial term of 12 Months with an option at Yieldi's discretion to extend. As of June 11, 2025 there are 12 Months remaining. Investors will immediately receive monthly interest payments at an annualized rate of Login for details on the principal balance over the life of the loan. If you invest in this loan in the middle of a month, you will receive a prorated interest payment for your investment for your first investment month and then full monthly payments thereafter. All payments are made automatically via ACH on the 1st of each month and investors all paid by the 10th of the month.
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