Mortgage Vintage borrower is seeking a $550k business purpose 2nd TD on this commercial building in Adelanto, CA. Borrower’s recent $5.5M 1st TD is current and held by Mortgage Vintage. 100% funds from this 2nd TD will be used towards purchasing another high output cultivation system to maximize production and meet borrower’s climbing product demand. New system priced over $1M; borrower matching our $550k out of pocket “skin in game” towards this purchase. Borrower’s cannabis business has now generated $7.4M in crop sales between Jan – September 2021; Recent P&L provided in investor file.
Borrower has multiple exit strategies for this new 2nd TD and existing 1st TD Mortgage Vintage loans: a consolidated refinance, business proceeds or a flip/sale of property & business packaged together with projected sale price of $20M – $25M for as is property, all existing equipment and lucrative, stable income producing cannabis brand “American Apothecary”. Borrower intends to pay-off both loans through one of these available exit strategies in 12 months.
The subject property is a two story, commercial-industrial building comprised of 38,000 SF rentable space located on a .69 acres parcel with a single rollup truck door and 24×7 gated guard. This subject property is 100%, fully occupied, single tenant, borrower’s cannabis company, paying $120,000/per month in rent with 3% annual increases. All required state and local cannabis licenses and permits are in place.
Subject property is very well located in the heart of California’s cannabis industry growth center in Adelanto CA, next to the Southern California Logistics Airport also known as “Victorville Airport” a large commercial use airport designed to provide major corporations with logistics needs, access to a global gateway to the Western United States. Located also near Interstate 15 FWY. and the city of Victorville.
What we like about this Trust Deed opportunity:
- Very experienced real estate investor, broker and property management owner
- Borrower $10M “skin in game” in purchase of building, permanent improvements and cultivation systems
- Legally permitted/licensed cannabis business – single tenant/owner-occupied
- 15.75% Investor Yield
- 55.00% LTV / 54.78% Net LTV
- 6 months guaranteed interest
- 3 months prepaid interest
- $4,950,000 Gross Protected Equity
- Steadily increasing crop sales; 7.4M Jan – Sept 2021.
- Low Risk Enviroscreen Report
