Mortgage Lending Platform to Landlords in the Cannabis Space

Industry

Financial Services

Company Type

Hard Money Lender

Location

CA

Size

$50,000,000+/-

Investment Type

Debt

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Helping Great Companies Grow

Overview

  • Green Cure Capital is seeking +/-$50 million to capitalize its legal cannabis lending platform
  • Senior debt secured by commercial real estate leased to legal cannabis companies
  • This financing platform fills the void for borrowers in this space
  • Founded in 2017 by Jay Hunter and David Young, based in southern California
Helping Great Companies Grow

Opportunity

  • The legal cannabis industry is growing rapidly
  • Only non-bank, non-institutional lenders are providing debt to the industry – hard money private lenders/syndicators
  • As a result, underwriting standards are extremely harsh, and loans are very conservative, expensive, and short term
  • Most commercial real estate developers and investors that are considering leasing their properties to the high growth legal cannabis industry have been forced to do all-equity transactions, or use expensive short-term hard money debt
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Helping Great Companies Grow

Solution/Strategy

  • Provide rationally structured and priced mortgage loans to landlords leasing to the legal cannabis industry
  • 1-7-year loans secured by a variety of industrial, office, and retail properties that are leased to licensed cannabis operators
  • Focus on properties leased to segments of the cannabis supply chain that are less vulnerable to competition such as extraction/manufacturing, transportation, distribution, and testing
  • Lend to landlords leasing to tenants that are engaged in cultivation and retailing when appropriate
  • Proposed Terms of the Loans;
    • Average Size: $3MM to $5MM, ranging from $500,000 to $9,000,000 depending on portfolio diversification requirements
    • Loan-to-Value: up to 70% of conventional (non-cannabis) property value
    • Maturities: 1 to 7 years
    • Coupons: fixed at 9% to 14% currently
    • Debt Service Coverage Ratios:  1.25x or greater on landlord’s NOI
Helping Great Companies Grow

Management

David Young

COO

Actively involved in all aspects of commercial real estate for over 35 years. Leadership positions in the banking, syndication, and real estate industries. Cumulatively has originated, purchased, sold, brokered, or borrowed over $1.5 billion in loans secured by commercial real estate assets. Has directly managed over 500 apartment units, multiple office and retail properties, and a distressed commercial mortgage portfolio of over $400 million. Principal at Partners Realty Capital, a founding chief revenue officer of a national boutique commercial mortgage loan conduit lender, and the head of loan originations and purchases for a banking subsidiary of ITT Corporation. Headed investment product development at a subsidiary of American Express that reached peak annual investment of $1 billion. Began his career as a commercial mortgage lending officer in Chemical Bank, the predecessor of JP Morgan Chase Bank. Was a past Board Member, Financial Committee Chair, and Audit Committee Chair for a major Orange County non-profit during a +$50 million new campus fund raising, construction, and operating ramp up. MBA from University of Chicago with concentrations in accounting, marketing, and finance. Bachelor’s honor degree in Business Administration from University of Wisconsin-Madison.

Jay Hunter

CEO

Over 25 years of commercial real estate, finance, and banking experience, with over $1 billion of structured lending and turn-around experience encompassing loan originations, structured finance, asset management, workout, foreclosure, and brokerage. Sourced, structured, and placed over $40 million of direct equity investments for all commercial real estate asset classes. Extensive experience in economic analysis, market knowledge and sponsorship execution. Thirteen years as a Managing Director with Partners Realty Capital – advised and closed multiple complex transactions. Six years with Bank of America, advising, underwriting, originating and selling loans, on all asset classes with multiple departments within the bank. Undergraduate degree in Economics from San Diego State University. MBA from Pepperdine University School of Business and Management. California licensed real estate broker.

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CONTACT US

Hi. We're not around right now. But you can send us an email and we'll get back to you, asap.

Thanks, Ken

Ken Margolis | Managing Partner Castle Placement, LLC
1460 Broadway Street, Rte 400
New York, New York 10036
(212) 418-1188 | C: (516) 712-7784
kmargolis@castleplacement.com

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