20 years + business owner/operator borrower sought a 1st Trust Deed to purchase this commercial and agricultural land subject property in Willows Creek, Humboldt County, CA. Borrower bringing $260K “skin in the game” towards down payment and seller is carrying a 2nd Trust Deed behind our 1st TD. Property appraised for $2.6M and Purchase Price is $2.6M. The subject property is appraised “As-Is” for land and commercial, there is no cannabis value considered in this appraisal. Exit strategy: refinance or business proceeds.
The subject property consists of two parcels with combined 326 acres of towering Redwood trees in the California Redwood Forest region of Humboldt County, Northern California. The subject property also features 4 mixed use buildings comprised of 6,500 gross SF. The subject property is completely self-supporting with multiple 1000 & 2000 gallon diesel storage tanks for the subject’s several industrial grade generators plus many large water storage tanks and 5 separate water well pumps for irrigation throughout subject property. The subject property also features twelve greenhouses with full electric and water service in place for existing grows. Subject property is zoned for multiple Commercial + Agricultural uses. The subject property is less than an hour east of Humboldt Bay, the city of Eureka and 270 miles north of San Francisco. Subject property is surrounded by similar commercial – AG properties.
The subject is currently used for cannabis cultivation. Borrower will continue same “turn-key” operations as seller who is retiring.
What we like about this Trust Deed opportunity:
- 15.00% Investor Yield
- 30.00% LTV on PP and Appraised Value
- Borrower $260K Down Payment “skin in the game”
- 9 months guaranteed interest
- Seller 2nd Trust Deed Carry Back Behind our 1st Trust Deed; Seller confidence in borrower ability to pay
- Borrower purchasing Property is Seller’s business property operator/manager – Borrower experience with property and business
- Subject property zoned for multiple Commercial + AG uses + Residential
- Legally permitted/licensed cannabis business