Cannabis Grow Facility, Industrial03/01/2019
In March 2019, ReProp Financial funded a $1.9M private mortgage loan secured by a light industrial building in Salem, Oregon. ReProp looked at financing this property in 2016, but the equity wasn’t in our range. The bank financing our borrower’s light industrial business park declined to renew their note, prompting an exit of their loan. Now that the property has a healthy measure of equity, we were able to refinance the property and provide capital for further build out. During underwriting, we evaluated a concern about an easement on the title relating to a cell tower and confirmed with the title company that it wouldn’t affect insurance to close the deal. The borrowing partnership runs the day to day operations and continues to build-out to the needs of tenants using rental income and our funding to update the property.