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.
Marcus & Millichap Capital Corp. Arranges $14.5M Construction Loan for 1,038-Unit Extra Space Storage in Homestead, Fla.
What happened: Marcus & Millichap Capital Corp. (MMCC) secured a $14.5 million construction loan to fund a new self-storage project in Homestead, Florida. The financing covers the development of a 1,038-unit Extra Space Storage facility at 1995 N.E. 8th St., roughly 32 miles south of Miami. The planned building will total about 135,800 square feet.
Key deal terms
The loan is a five-year facility provided by a local bank and arranged from MMCC’s Miami office. The borrower is an undisclosed self-storage developer. The loan uses a floating interest rate and was underwritten as 250 basis points above 1-month SOFR for the first three years. The payment schedule includes 36 months of interest-only payments. MMCC handled the arrangement through its representative in Miami, Robert Bhat.
Why it matters
This deal adds a large-format, branded self-storage property to South Florida’s development pipeline. Extra Space Storage is the planned operator, which signals an institutional-level operator will manage the facility when complete. The debt structure — a mid-term five-year loan with an initial interest-only period and a SOFR-linked spread — reflects common construction finance patterns in today’s floating-rate market.
Project and market details
The property will be located on a site suited to serve residents and businesses in Homestead and nearby communities. The sizable unit count and gross square footage point to a multi-story or large single-story layout optimized for storage unit mix and drive aisles. Homestead’s proximity to Miami and regional demand drivers for storage give the project access to a broad customer base.
Related local development activity
Separately in Homestead, another major development is moving forward. A Miami-based developer secured a $64 million construction loan from a national bank for the residential portion of a mixed-use project called Soleste Midtown. That site covers about 21 acres and will include 354 luxury garden-style apartments plus 43,000 square feet of commercial space. The residential component is planned as six five-story buildings with unit sizes ranging from 676 to 1,131 square feet, a 7,000-square-foot clubhouse, a pool, and a children’s playground. The project is designed to be pedestrian friendly and will include six commercial outparcels along a central promenade with convenient access to local stores and services.
Industry events and networking highlights
Professionals active in retail, industrial, office, multifamily, healthcare, seniors housing and net lease markets continue to gather at sector-focused events. Upcoming programs will cover trends in investment, development and financing, capital availability, and market performance. Some events emphasize networking with drinks and appetizers, as well as panels on improving market conditions in areas like NNN and sale-leaseback deals. Specific events will bring together decision-makers and capital sources in markets such as St. Louis, Salt Lake City and Southeast regional hubs, plus gatherings aimed at healthcare real estate and seniors housing operators.
Context for developers and lenders
Construction loans with floating-rate structures and initial interest-only periods remain common as lenders and borrowers manage rising short-term rates and construction cost pressures. Underwriting to a spread over 1-month SOFR aligns loan pricing with short-term market moves while offering a predictable initial coupon for the early years of construction and lease-up. Local bank participation in construction finance continues to be meaningful for mid-sized developments in fast-growing Sun Belt markets.
Bottom line
The MMCC-arranged loan marks another sizable piece of capital flowing into South Florida development, pairing institutional operators with construction debt tailored for today’s interest-rate environment. The Extra Space Storage project and nearby mixed-use residential work together to show how capital for specialist assets and mixed-use communities is being placed across the region.
FAQ
What is the loan amount and who arranged it?
The construction loan is $14.5 million and was arranged by Marcus & Millichap Capital Corp. (MMCC) through its Miami office.
Where is the storage facility located?
The facility will be at 1995 N.E. 8th St., Homestead, Florida, about 32 miles south of Miami.
How large is the development?
The project will have 1,038 units and approximately 135,800 square feet of space.
Who will operate the property?
The planned operator is Extra Space Storage.
What are the loan terms?
The loan is a five-year facility from a local bank, underwritten at 250 basis points above 1-month SOFR for the first three years, with 36 months of interest-only payments.
Is the borrower identified?
The borrower is an undisclosed self-storage developer.
What other projects are nearby?
A nearby mixed-use development named Soleste Midtown is moving forward with a separate $64 million construction loan for its residential component. That project includes 354 apartments and 43,000 square feet of commercial space on a 21-acre site.
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Key Features at a glance
| Feature | Detail |
|---|---|
| Loan arranger | Marcus & Millichap Capital Corp. (MMCC) — Miami office |
| Loan amount | $14.5 million |
| Borrower | Undisclosed self-storage developer |
| Property | Extra Space Storage, 1,038 units, 135,800 sq ft |
| Location | 1995 N.E. 8th St., Homestead, Florida (approx. 32 miles south of Miami) |
| Loan term & rate | Five-year term; floating rate underwritten as 250 bps above 1-month SOFR for first 3 years; 36 months interest-only |
| Nearby major project | Soleste Midtown — $64M loan for 354 apartments and 43,000 sq ft commercial on 21 acres |
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 FL News
FLORIDA STAFF WRITER The FLORIDA STAFF WRITER represents the experienced team at constructionflnews.com, your go-to source for actionable local news and information in Florida and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the Florida Build Expo, major infrastructure projects, and advancements in construction technology showcases. Our coverage extends to key organizations like the Associated Builders and Contractors of Florida and the Florida Home Builders Association, plus leading businesses in construction and legal services that power the local economy such as CMiC Global and Shutts & Bowen LLP. As part of the broader network, including constructioncanews.com, constructionnynews.com, and constructiontxnews.com, we provide comprehensive, credible insights into the dynamic construction landscape across multiple states.
