La Quinta Capital offers cannabis-related commercial real estate services that include commercial loan brokerage, sale-leaseback, property brokerage, and investment services. Our portfolio of loan products includes purchase loans, refinance rate and term, refinance with cash out, and bridge financing. We also have investor financing for sale-leaseback transactions. Property financing options include institutional and private money lenders, and banks.
Property owners seeking expansion capital or wishing to cash out while retaining the use of their property should consider our sale-leaseback program. See below.
La Quinta Capital has assembled a large database of lending sources for licensed cannabis properties and businesses. Our database includes hard money lenders, hedge funds, family offices, and pioneering banks. Our correspondent banks offer conventional bank financing loans on cannabis commercial real estate. In addition to the preceding, La Quinta Capital makes investments for its own portfolio.
Funding solutions range from hard money bridge loans to conventional fixed rate bank loans with terms of up to 10 years with a 25-year amortization. Rates will vary over time, however as of April, 2022 rates range from potentially as low as 5.50% for bank financing to low teens for hard money bridge loans. Loan size and cannabis property valuation versus the subject's conventional commercial property usage value will vary based upon deal points and collateral location and composition. We offer loan amounts of up to 65% on appraised cannabis value in select instances.
To qualify for bank financing, the borrower must be able to pass a strenuous underwriting process that includes filed taxes, credit checks, and background checks. For those businesses that can qualify for conventional bank financing, this is a breakthrough that provides huge savings on interest payments.
Our minimum loan size is $1,000,000 with funding solutions of up to 20,000,000.
Financeable property types include retail buildings, warehouse, grow buildings including greenhouse and outdoor farm.
For additional information, please call either Bob Elliott at 1-925-787-6083 or call Greg Rutten at 1-858-761-3340.
A sale-leaseback transaction is the perfect financing solution for licensed cannabis property owners seeking capital for business expansion.
Under a sale-leaseback, the property owner sells the building to an investor, the terms of the sale include the seller becoming a long term tenant. The sale-leaseback allows cannabis companies to maintain their current operations while withdrawing real estate equity for business expansion, equipment purchase, and even partner buyouts.
Sale-leasebacks are usually financed by an investor group that purchases the building from the current owner/operator under a LLC or partnership format. The seller becomes a tenant on a long-term lease basis. Lease terms include a negotiated monthly rent schedule based upon comparable rents and cap rates. Lease covenants commonly include terms of 10 years with typical NNN terms. Sale-leaseback terms may be structured to accommodate special circumstances.
Minimum sale-leaseback size is $1,000,000 with transactions of up to $25,000,000.
Financeable property types include retail buildings, warehouse, grow buildings, greenhouse, and outdoor farms. Cannabis operations include retail, manufacturing, grows, distribution, testing, and transportation.
For additional information, please call call Greg Rutten at 1-858-761-3340.