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.
Construction Financing Secured for 1,038-Unit Self-Storage Project in Homestead
A $14.5 million construction loan has been arranged for a new self-storage development at 1995 N.E. 8th St., Homestead, Fla. The financing covers the build-out of a 1,038-unit Extra Space Storage facility totaling roughly 135,800 square feet. The loan was secured by Marcus & Millichap Capital Corp. through its Miami office and arranged with a local bank on behalf of an undisclosed self-storage developer.
Loan terms and structure
The debt carries a five-year term and features a floating interest-rate structure. For underwriting purposes the loan is set at 250 basis points above 1-month SOFR for the first three years. The payment schedule includes 36 months of interest-only payments, offering the developer a period of reduced cash outflows during initial construction and lease-up.
Project and operator details
The project will operate under the Extra Space Storage brand and is sited in Homestead, about 32 miles south of Miami. The facility’s footprint and unit count position it among larger suburban storage developments, capturing demand from local households, small businesses, and nearby commercial corridors. The borrower’s identity has not been disclosed, while Marcus & Millichap Capital Corp.’s representative on the transaction was based in the Miami office.
Why the loan matters locally
The financing is one of several recent capital moves in Homestead and the broader South Florida market that signal continued investor interest in both residential and commercial projects. Storage remains a steady asset class in suburban and gateway markets, and the deal structure — with an early floating rate tied to SOFR and a multi-year interest-only period — reflects lenders’ willingness to tailor terms for construction phases and expected stabilization timelines.
Nearby and related development activity
In the same city, another major construction loan was recently put in place for the residential portion of a mixed-use development called Soleste Midtown. That loan totaled $64 million and will fund the residential component of a larger 21-acre project that includes 354 luxury garden-style apartments and about 43,000 square feet of commercial space. The residential plan calls for six five-story apartment buildings with unit sizes ranging from 676 to 1,131 square feet and community amenities that include a 7,000-square-foot clubhouse, a pool, and a children’s playground. The residential buildings will be located toward the rear of the site, while six commercial outparcels will front the main drive and be centered along a promenade. A Miami-based builder will develop the commercial portion of the project.
The company behind Soleste Midtown is active across South Florida with multiple projects in various stages, a pipeline that includes thousands of rental units and significant commercial square footage. Recent activity from that developer demonstrates steady multifamily and mixed-use momentum across the tri-county region, from urban infill to suburban village-style projects.
Industry context and events
Market participants and capital providers continue to meet at a range of industry events that cover retail, industrial, office, multifamily, and healthcare sectors. Upcoming sessions will focus on investment, development, financing trends, improving market conditions in net-lease and sale-leaseback transactions, multifamily development drivers in fast-growing Southeast markets, and seniors housing strategies for improving occupancy. Several conferences and networking sessions will offer expert panels on capital availability, market performance, and development trends, often paired with networking receptions.
What to watch next
Key items to follow include lease-up velocity at the new storage facility once it opens, interest-rate movements that affect floating-rate construction loans tied to SOFR, and construction starts for the mixed-use and multifamily pipeline in Homestead and neighboring South Florida communities. Lender appetite for tailored interest-only periods and SOFR-based pricing will be a bellwether for how construction-financing deals are structured in the near term.
Frequently Asked Questions
What project received the $14.5 million construction loan?
A 1,038-unit self-storage facility at 1995 N.E. 8th St. in Homestead, Fla., totaling about 135,800 square feet, secured the loan.
Who arranged the financing and who provided it?
Marcus & Millichap Capital Corp. arranged the construction financing from a local bank. The borrower is an undisclosed self-storage developer.
What are the main loan terms?
The loan is a five-year facility with a floating rate underwritten at 250 basis points above 1-month SOFR for the first three years and includes 36 months of interest-only payments.
Is this deal connected to other recent Homestead projects?
The loan comes amid other Homestead-area construction activity, including a separate $64 million loan for the residential component of a mixed-use project that will deliver apartments and commercial space on a 21-acre site.
How might this financing affect local development?
The deal signals continuing capital availability for targeted asset types in the region and highlights lender flexibility on SOFR-based terms and interest-only periods during construction and lease-up.
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Quick Reference — Key Deal Features
| Feature | Detail |
|---|---|
| Loan amount | $14.5 million |
| Borrower | Undisclosed self-storage developer |
| Arranger | Marcus & Millichap Capital Corp. (Miami office) |
| Lender | Local bank |
| Term | 5 years |
| Interest structure | Floating; underwritten at 250 bps above 1-month SOFR (first 3 years) |
| Payment feature | 36 months interest-only |
| Project size | 1,038 units; ~135,800 sq ft |
| Operator/Brand | Extra Space Storage |
| Location | 1995 N.E. 8th St., Homestead, Fla. (about 32 miles south of Miami) |
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 CA News
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