Industrial Condominium

Plymouth County, MA

Clubhouse Capital secured $3.2 million in mortgage financing to fund the purchase of a 50,000 sf industrial condominium unit leased to a licensed marijuana cultivator. The condominium unit is located within a large industrial building occupied by unrelated businesses. The building owner was approached by the cultivator seeking grow space, but any such use would have violated loan covenants with the bank holding the SBA-guaranteed mortgage on the building. Clubhouse advised the owner to convert the building to condominium, and to convey the shell “cannabis” unit to an affiliated entity, thereby isolating the bank and the SBA from the cannabis revenue stream Clubhouse also negotiated the transactions ‘approval and the partial release of mortgage with both the bank and the SBA, and then coordinated the conversion of the building to condominium. (Summer 2018)