To Be Fair, This Group Sells Itself…
A debt fund lending with rates starting at 7.75% on a blended cannabis/non-cannabis valuation doesn’t need us to sell it.
Luckily for you, they asked us to do it anyway.
This very experienced real estate lender recently jumped into the cannabis space with both feet and they’re on the prowl for more deals. They just put out fantastic terms on a cannabis deal and they want more.
While most lenders approach cannabis deals in one of two “black or white / cannabis or non-cannabis” valuation modes, this group likes playing in the middle-ground. Cannabis values tend be more expensive but you net more proceeds at a higher cost. Non-cannabis valuations are the exact opposite; less proceeds but less costly. This group is evaluating cannabis deals on a blended valuation resulting in higher loan proceeds at rates from 7.75%. They’ll also provide longer term loans than most cannabis friendly lenders, loans out to four years.
They love industrial cannabis properties and cannabis retail properties in a diversified strip/center. They’ll lend on indoor cultivation facilities but won’t lend on greenhouses right now.
The fun stuff:
- Deal Sizes $2 – $25M
- Up to 75% LTC
- Between 70-75% LTV on the blended value
- Interest rate: 7.75-8.75%
- 2 points lender origination
- 1-4 year term
- Property Types: Industrial and Retail preferred
- No greenhouses
- Primary markets preferred but will look at tertiary markets.
If you have a deal that meets these criteria, then we should talk. Click here or shoot us an email at Justin@encapital.com and let’s get started today!