Jackpot: Cannabis REIT has $120M in capital to lend to operators

West Palm Beach-based REIT has so far provided $50M in financing to five borrowers

Miami /
Aug.August 19, 2020 05:35 PM
Jonathan Kalikow and Leonard Tannenbaum

Jonathan Kalikow and Leonard Tannenbaum

AFC Gamma, a West Palm Beach-based real estate investment trust, now has $120 million in capital on hand to lend to cannabis operators.

AFC Gamma, which stands for Advanced Flower Capital, announced it raised $80 million of equity from 20 family offices, completing the first round of its $200 million investment vehicle, according to a press release. The commercial mortgage REIT also has a credit line of up to $40 million, freeing up a total of $120 million in capital.

The company has so far provided $50 million in financing to five marijuana businesses, including dispensaries, cultivators, processors, and combined operations. It has committed to lending another $30 million to existing borrowers and to two new borrowers, according to the release.

Traditional financing is notoriously difficult to get for cannabis companies, experts say.

AFC Gamma’s announcement comes as landlords of cannabis production facilities and dispensaries are outperforming the rest of the retail market during the pandemic. Marijuana product sales remained steady, and even saw gains in some states, including in Florida.

Total sales of medical marijuana in Florida blossomed, increasing 56 percent between March and May, compared to the same period in 2019, the Wall Street Journal reported, citing data from the Florida Office of Medical Marijuana Use.

Investors have flocked to states with legal recreational use, with some investment firms opening offices and making moves in states where legalization looms on the horizon.

Write to Katherine Kallergis at [email protected]


Related Articles

arrow_forward_ios
From left: TRP's President Daniel Firtel, MV Real Estate Holdings' Alex Mantecon, and TRP's Brandon Johnson with 8303 SW 40th Street
Who wants Cookies? National cannabis firm opening dispensary in Westchester
Who wants Cookies? National cannabis firm opening dispensary in Westchester
Domenic Gatto and Banyan Cay Resort and Club (Linkedin, Banyan Cay, Illustration by The Real Deal with Getty)
Developers of troubled West Palm resort project facing $61M foreclosure
Developers of troubled West Palm resort project facing $61M foreclosure
The Comras Company's Michael Comras with 6901 Biscayne Boulevard (Getty, The Comras Company, iStock)
Up in smoke? Comras loses bid to open medical marijuana dispensary
Up in smoke? Comras loses bid to open medical marijuana dispensary
Michael Comras and Marc Roberts with Google Street View of the properties at 60 Northeast 11th Street, 6901 Biscayne Boulevard, 2222 Northwest Fifth Avenue and 172 West Flagler Street all in Miami (Google Maps, University of Miami)
Miami the medical pot mecca? Michael Comras, Marc Roberts seek to open dispensaries
Miami the medical pot mecca? Michael Comras, Marc Roberts seek to open dispensaries
Michael Stern with rendering of 1 Southside Park (DS Development Group and SHoP Architects)
Michael Stern’s JDS lands $86M loan for planned mixed-use Brickell high-rise
Michael Stern’s JDS lands $86M loan for planned mixed-use Brickell high-rise
 E11even's Marc Roberts and Romie Chaudhari with 60 and 90 Northeast 11th Street (Marc Roberts, Abingtonemerson, Loopnet, iStock)
Puff, puff, pass: Developers win approval for downtown Miami medical marijuana dispensary
Puff, puff, pass: Developers win approval for downtown Miami medical marijuana dispensary
From left: Kyle Asher, managing director, Monroe Capital and Lotus Capital managing partner Faisal Ashraf along with a rendering of Panther National in Palm Beach County (Panther National, LinkedIn/Kyle Asher, LinkedIn/Faisal Ashraf, iStock)
Centaur scores $170M financing package for residential golf community at Avenir
Centaur scores $170M financing package for residential golf community at Avenir
NorthWest Healthcare's Paul Dalla Lana with 13211 US Highway 1 (NorthWest Healthcare Properties, Google Maps)
Toronto REIT buys Juno Beach rehab center for $25M
Toronto REIT buys Juno Beach rehab center for $25M
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...