Zoned Properties, Inc. (OTCQB:ZDPY), a leading real estate development firm for emerging and highly regulated industries including legalized cannabis, has secured an initial debt facility of up to $4.5 million.
Debt Facility Overview & Highlights
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Up to $4.5 million initial debt facility
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Secured as a 50% loan-to-value collateralized against the company’s Tempe property
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6-year loan term on a 25-year amortization with balloon payable at 72 months
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Variable interest rate option of prime + 2.00%; currently a 7.00% annualized interest rate
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Fixed interest rate option of prime + 2.25%; currently a 7.25% annualized interest rate
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Interest only payment for first 12 months
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Relationship with new banking partner opens door for expansion of debt facility in future
“We have spent years positioning and building Zoned Properties to become a top of class commercial real estate acquisition vehicle for complex and highly regulated industries such as legalized cannabis,” stated Bryan McLaren, CEO for Zoned Properties.
“Not only does this debt facility allow us to pursue Zoned Properties’ pipeline of exciting property acquisition candidates across the country, we believe it is also a major signal that sophisticated and trusted companies servicing the cannabis industry are starting to see more access to capital at more competitive rates. We are very excited about the banking relationships that have helped bring this new capital into Zoned Properties. We believe this debt facility, combined with the opportunity to utilize our public vehicle for future equity capital raises, positions Zoned Property to grow its property portfolio to add meaningful value for our shareholders and provide a much needed full-spectrum of real estate services for industry stakeholders,” continued McLaren.
Photo by Giorgio Trovato on Unsplash
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