Funding Purpose
Tauro Capital Advisors facilitated a sponsor’s up leg of 1031 exchange by placing a loan for the acquisition of two Gage dispensary locations in the Midwestern U.S.
Property Description
The properties are prominent dispensary operators with eleven current locations.
Sponsors
The sponsor is an experienced real estate investor with strong backing and history owning NNN properties.
Challenges
- Cannabis use strongly restricts lender pool
- Known environmental history with one property presented a risk in the due diligence
- Buyer’s 1031 exchange required high proceeds
Solutions
- Tauro sourced a credit union that lends on cannabis in the Midwest with attractive terms
- Tauro engaged experienced firm who guided the lender and buyer through the historic use of the one property
- Through facilitating a banking relationship, Tauro negotiated a discount on the rate increasing loan proceeds
Funding
- Loan-to-Value (LTV): 70%
- Interest Rate: 7.25%
- Amortization: 30 Years
- Term: 5 Years Fixed
- Prepayment: No Penalty
