Getting to Know - Statewide CDC

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For self-storage owners, finding the right financing can make the difference between putting a project on hold and moving it forward. Whether you’re acquiring a facility, refinancing an existing property, expanding your footprint, or making significant improvements, having an experienced lending partner who understands both SBA financing and the self-storage industry can be incredibly valuable.

AZSA’s new Associate Member is Statewide CDC.  Brian has been working in this space for more than 25 years. Statewide CDC has been around for 40 years, and that depth of experience gives them the ability to look at projects creatively and help borrowers navigate financing situations that may not fit neatly into a traditional bank’s lending box.

We sat down with Brian Wallace, Senior Loan Officer at Statewide CDC, to discuss Statewide CDC’s new venture with AZSA.

Finding a Path Forward When Traditional Financing Gets Difficult

One of the things I enjoy most about what I do is helping businesses find solutions when they’ve been told “no.”

Statewide CDC has worked on self-storage projects where conventional financing was difficult to secure, including construction projects that banks initially weren’t willing to finance. Our role is to put the right financing structure together, obtain SBA approval when applicable, and work with lending partners to get the project across the finish line.

Because we work with banks, credit unions, and other lending institutions, we can look beyond a single source of financing. Credit unions, in particular, have become increasingly active in commercial lending, and relationships across different types of lenders give us more opportunities to find the right fit for a project.

Financing Acquisitions, Refinancing and Growth

Self-storage is an area where financing can play a major role in an owner’s growth strategy.

We can work with owners who are purchasing facilities, refinancing existing properties, expanding their current locations, or making substantial tenant and property improvements.

One especially valuable option is cash-out refinancing. For example, an owner may have a successful facility that needs to be refinanced but also wants to access equity for improvements or use that capital to acquire another property.

That lets an owner put their existing asset to work while continuing to grow their portfolio.

Navigating the SBA Process From Start to Finish

The SBA process can be intimidating if you haven’t gone through it before. Many moving pieces are involved, and self-storage projects can have additional nuances borrowers need to understand.

That’s where experience matters.

We work with borrowers from start to finish, including helping obtain SBA approval and managing the process with the federal government. In many ways, we serve as the buffer between the borrower and the SBA so the owner doesn’t have to figure everything out alone.

Self-storage also has specific considerations. Management agreements, for example, can be important when determining whether a project qualifies for SBA financing. The agreement's structure and your relationship with the management company can affect eligibility, so it’s important to work with someone who understands those requirements.

Experience Matters

Statewide CDC has been doing this work for decades.

Today, we are one of the largest certified development companies in the country. Last year, Statewide CDC worked on close to $1 billion in projects, giving our team experience across a wide range of transactions, industries, and financing scenarios.

For borrowers, that experience is important. SBA lending isn’t something you want to learn as you go—particularly when you’re dealing with a multimillion-dollar project.

My goal is to understand the project, identify potential challenges early, and help the borrower build a financing strategy with the best chance of success.

Boots on the Ground in Arizona

Although I’m based in Reno, I’m now personally covering the Arizona market and expect to be in the state regularly.

I believe in meeting people face-to-face whenever possible. I want to meet the owner, see the property, understand what they’re trying to accomplish, and get a feel for the project itself.

For a large self-storage investment, those details matter.

I also spend a lot of time building relationships with banks and commercial real estate brokers. Those relationships are an important part of what we do because they give us additional resources when we’re structuring a transaction or finding the right lending partner for a project.

What Does the Financing Timeline Look Like?

Every transaction is different, but a typical project may take approximately 90 days from start to finish.

Construction and expansion projects generally take longer. If an owner is adding another building, adding hundreds of units, or completing major improvements, the process may be closer to 120 days or more because architectural plans, construction requirements, permitting, and other factors come into play.

The borrower’s responsiveness also matters. The more quickly we can gather the information and documentation we need, the more efficiently we can keep the process moving.

Helping Existing Facilities Stay Competitive

Expansion and improvement financing is becoming particularly relevant in markets where new self-storage development is creating additional competition.

Existing owners may be looking at improvements such as new gates, doors, property upgrades, technology, expansion, or other investments that can help an older facility remain competitive.

Those improvements require capital.

We can look at refinancing alongside expansion or improvements and help owners evaluate whether SBA financing offers an opportunity to accomplish both.

Our SBA financing structure generally includes two components: a first-position loan from a bank or lending institution and the SBA-backed portion of the financing. Depending on the transaction, the SBA portion may also provide attractive long-term rates compared with conventional financing.

Why I Joined AZSA

One reason I joined the Arizona Self-Storage Association is simple: I want to build stronger relationships within the self-storage industry.

I already work with self-storage owners and projects, but I want to continue expanding those relationships in Arizona, Nevada, and California.

Being involved with AZSA gives me an opportunity to meet owners and operators, learn more about the challenges they’re facing, attend industry events, and hopefully become a financing resource members know they can call when they have a project they’re considering.

I’m looking forward to participating in AZSA events, meeting more Arizona owners and operators, and becoming an active part of the association.

At the end of the day, financing isn’t just about getting a loan approved. It’s about understanding where an owner wants to go next and finding the right structure to help them get there.