Colorado Real Estate Journal - August 5, 2015
An East Coast investment group entered the Denver industrial market with a marijuana grow facility and intends to acquire similar facilities in the market over time. TWP Group purchased a building on the Interstate 70 corridor near Peoria Street, added a second floor to create a total of 55,000 square feet and has a tenant for the entire building. Montegra Capital Resource Ltd., a Denver-based private money bridge lender, funded the initial $2 million segment of a $3.75 million first mortgage secured by the property. “We were looking for the right property and funding opportunities to enter the Colorado market, and both fell into place with this deal,” said P.W. Thompson, manager of TWP Group. “Working with Montegra has been a pleasant experience from Day One. Their market knowledge, speed and flexibility have allowed us to enter this market where and when we wanted.” The two-stage loan provided TWP with funds to build the turnkey grow warehouse with state-of-the-art equipment and finishes. The equipment will include some of the most advanced growing technology available, including grow lights imported from the Netherlands. Because of security issues surrounding the marijuana growing industry, the address of the building wasn’t released. TWP said it chose the location because of the concentration of growing facilities in the area. Montegra has established a lending program specifically for people investing in marijuana warehouse and dispensaries. “There’s no denying that marijuana is a rapidly growing industry in Colorado and that growth in this industry has presented a number of both opportunities and challenges from an investment perspective,” said Bob Amter, president and founder of Montegra Capital Resources. “Given the federal restrictions placed on most banks, it can be challenging for investors to find financing for properties with marijuana tenants,” he said. In addition to the loan for the I-70 warehouse, Montegra has funded six other loans for a total of more than $8 million on marijuana-tenanted warehouses and dispensaries.