This Greenhouse marks the fifth full-scale production greenhouse facility in the lineage of Greenhouse’s initiative to develop locally-grown produce solutions for health-conscious shoppers that are also environmentally focused. The Company’s products use up to 80% less water, 90% less land and 95% less fuel when compared with long-distance supply chain producers. The Company’s products are also grown pesticide free and are non-GMO verified.

The subject financing will be used to complete construction of the new facility and will be matched by an equity contribution of $8,314,631.50 from the borrower. A portion of the borrower’s contribution will be used to fund a 12-month loan payment reserve ($964,455), and an initial construction loan interest reserve ($392,318) which will be maintained with the lead lender.

Trends and demand for the products produced by the company have continued to increase and management has already secured off-take contracts for 100% of the subject greenhouse’s produce. Management has developed a very strong relationship with Ahold (including subsidiaries); a large scale, nation-wide grocery chain distributor with more than 3,200 locations throughout the US. As it relates to the subject request, management has negotiated an off-take agreement with this distributor/retailer with an average price of $8.49 per product pound. Projections for the subject facility were prepared utilizing an average price per pound of $7.16 which is 15.63% less than that of the national trending average obtained by the feasibility study. Management’s projections for the subject greenhouse are in line with the scale up and operations of three similar greenhouse facilities that are successfully operated by the parent company today.

The company’s initiative continues to be supported and back by large-scale investors. Prior to the end of September, the investors have committed to purchasing additional shares of the parent company, in exchange for $65,000,000 which will abundantly-capitalize the Company for additional greenhouse development, as well as provide fall-back to accommodate any unforeseen capital needs. The parent company of the borrower is well-positioned to capitalize on the growing trends in this segment of the agricultural industry.

Loan ID 0115
DSCR .49
LTV 64.105
Note Rate 4.25
Property Location NC
NAICS 111219
Guaranty Type USDA
Loan Term 25 yrs
Rate type Var
Note date 10/06/2020
Maturity date 06/10/2044
Participation Availability Amount $0
Minimum Participation Amount $250,000
Original Loan Amount $12,500,000
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