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- East West Bank (copy 01)
East West Bank (copy 01)
3.5% Interest Rate For Cannabis Deals
We Have A Bank, Yes A BANK Lending On Cannabis CRE
A lot of times, hunting for new cannabis lenders is like panning for gold. Most of the time (like 99% of the time) all you end up with is a bunch of sand in your pan and a sore back. Only 1% of the time do you find something that shines just right and as you reach for it holding your breath you discover that it's just a shiny piece of nothing. Then, on that rarest of rare occasions your heart starts to beat a bit faster and you realize that you found gold!This, dear reader, is cannabis gold.We have a bank. Yes, a real bank lending on cannabis real estate. Now, I hear you saying "but cannabis is federally illegal how is a bank lending?" It's a fair question, and the only thing we can really say is that this bank has guts. Anyone can see the writing on the wall that it's only a matter of time before the whole industry changes. This bank is just more eager to get into the market now than most. It's a "damn the torpedoes, full steam ahead" kind of situation. Can you hear that? That's the sound of the walls coming tumbling down.However, you didn't come here to read my goings on, so let's get down to the "Brass Tacks" shall we?This group has 2 important requirements for them to consider your deal. 1, Your location has to be excellent. We're talking the primary of the primary. Hollywood, CA? Yes.Coachella? No.2, They're extremely relationship driven.If they're giving you 3.5% money they're going to want to have a depository relationship with you outside of this deal alone. They'll consider a one-off deal but the chances of it happening are substantially slimmer if you don't also have an ongoing relationship. They're requiring recourse on the majority their cannabis deals. They'll consider non-recourse on deals that are extremely low LTV non-cannabis value. They prefer properties with multiple tenants instead of single tenant situations. So if you have say, a strip mall with one dispensary in place this is a good option.Their deal criteria is:
Deal Size $1.5 - $20M
Up to 65% LTV on the Non-Cannabis Value
Interest rate: 3.5-4%
Term length varies deal-by-deal but they like longer loans
Recourse: Full recourse
Min DSCR: 1.35
Property Types: All types (Warehouse & Industrial given top priority)
No Construction
Prefers multi-tenant properties
Geographics
Limited primary locations in the following states
CA
NY
MA
WA
Seriously, don't wait on this one. If you have a deal that fits the above criteria click the button below or shoot us an email and let's get started today!
P.S.
If you're brand new to the EN Capital newsletter; each week we promote a new capital source for a variety of commercial real estate properties. So if the above lender is not relative to you, the chances are high that we'll have the perfect capital source for you soon.
P.P.S.
EN Capital is a commercial real estate mortgage brokerage shop.
We are not direct lenders. Seriously, every time we do a blast some guy responds and gets pissy when he realizes we're brokers. It's on the top of our website, LinkedIn, clear in all our marketing. We honestly don't know how to make it more obvious. Don't be that guy.
P.P.P.S.
If you have a commercial real estate deal, unrelated to the above, that needs capital right now reach out to us and let's chat!
Be sure to connect with EN Capital on Linkedin. and visit our website here.
Connect with EN Capital President, Nate Whigham on Linkedin Here
Connect with EN Capital Associate, Justin Ashcraft on Linkedin Here
Nathan WhighamPresidentCA DRE Broker License: 01793655EN Capital Contact Info:www.encapital.com[email protected]Justin Direct Line: 323-521-4766