Investors searching cannabis property loans, dispensary real estate financing, and cannabis warehouse bridge need a lender who underwrites licensed real estate — not inventory, not plant counts, and not unlicensed ops.
Jaken Finance Group considers cannabis-related commercial real estate bridge on qualified files. Rates: 8.99%–13.5% interest-only, terms 12–24 months. Underwriting is collateral-first: building, lease, license transferability, and a documented exit.
See the commercial property type matrix · industrial warehouse loans · special-use commercial
What we finance — and what we do not
| In scope (real estate) | Out of scope |
|---|---|
| Acquisition of licensed retail, grow, or processing RE | Unlicensed or federal-prohibited activity |
| TI / security buildout on titled real property | Financing plant inventory as primary collateral |
| Sale-leaseback of real estate to licensed operator | Speculative land without license path |
| Refinance bridge when bank takeout is delayed | Operating lines for inventory / payroll alone |
Property subtypes and underwriting focus
| Subtype | Primary metrics | Typical leverage |
|---|---|---|
| Dispensary retail | License, lease, sales per SF (ops support) | 55%–65% LTV |
| Indoor cultivation | Power capacity, HVAC, security, certificate of occupancy | 55%–65% LTC |
| Greenhouse / outdoor | Water rights, zoning, security perimeter | Deal-by-deal |
| Processing / manufacturing | Industrial buildout, environmental | 55%–65% LTC |
| Distribution warehouse | Clear height, security, industrial lease | 60%–68% LTV |
Industrial shell underwriting often overlaps industrial warehouse loans — cannabis files add license and security layers.
Purchase vs. value-add
| Scenario | Structure | Notes |
|---|---|---|
| Stabilized leased to licensed tenant | Bridge on NOI / lease | Confirm license transfer clauses |
| Dark industrial → grow buildout | LTC + milestone draws | Power upgrade is often the critical path |
| Dispensary TI for new license | Acquisition + TI holdback | Timing tied to local approval |
| Sale-leaseback | Bridge then private permanent | Document rent vs market |
Worked example — licensed grow in industrial shell
State-legal market — 28,000 sf warehouse conversion to indoor cultivation:
| Line | Amount |
|---|---|
| Purchase (industrial shell) | $2,400,000 |
| Grow buildout (HVAC, lighting, security, rooms) | $1,100,000 |
| Soft costs / interest reserve | $220,000 |
| Total cost | $3,720,000 |
| Bridge at 60% LTC | $2,232,000 |
| Sponsor equity | $1,488,000 |
| Rate | 12.5% IO · 18-month term |
| Lease to licensed operator | Absolute NNN · 10-year |
| Stabilized NOI | ~$310,000/yr |
| Exit | Private credit / credit-union CRE or cash sale |
Power upgrade and certificate of occupancy for cultivation use gate the second and third draws — not square footage alone.
License and diligence checklist
| Item | Why lenders care |
|---|---|
| Active state / local license | Occupancy legality |
| Transfer / change-of-ownership rules | Post-close continuity |
| Lease cannabis clauses | Landlord default risk |
| Security plan (cameras, vault, access) | Insurance and compliance |
| Phase I ESA | Prior industrial use |
| Utility letters | Amp capacity for grow |
Permanent exits — the hard part
Many agency and CMBS programs will not take cannabis-tenant real estate. Plan exits early:
| Exit | Reality check |
|---|---|
| Private credit / specialty CRE | Most common takeout |
| Credit union / community bank | Jurisdiction-dependent |
| Cash sale to operator or REIT niche | Model marketing time |
| Conventional bank | Often unavailable |
Bridge without a named exit path is a carry trap — disclose takeout conversations at application.
Risks unique to cannabis real estate
- License denial or delay after close
- Banking disruption for the tenant (rent payment friction)
- Municipal ban / overlay changes
- Buildout cost overrun on HVAC and electrical
- Limited buyer pool if exit is a sale
Real estate vs. operating company — keep the stacks separate
Bridge files clear faster when sponsors present:
| Stack | Documents |
|---|---|
| Real estate | Purchase contract, appraisal, survey, Phase I, entity owning title |
| License | State/local license packet, transfer rules, local zoning compliance |
| Occupancy | Lease or affiliate lease at market rent, security plan, CO for use |
| Exit | Named takeout conversations or sale comps for similar licensed RE |
Blurring ops P&L into the mortgage without a lease structure is the most common reason cannabis real estate files stall in underwriting.
If the cash need is payroll, security, packaging, or a merchant cash advance rather than the deed, that is unsecured loans for cannabis businesses — a Preferred Funding Group referral, not this bridge.
Security and insurance CapEx bands (illustrative)
| Item | Why it hits LTC |
|---|---|
| Cameras / access control / vault | License and insurer requirements |
| Odor / HVAC filtration (grow) | Neighbor and municipal compliance |
| Electrical service upgrade | Grow and processing power loads |
| Specialty property insurance | Higher premiums than vanilla industrial |
Budget these before locking purchase price — they are not “soft” afterthoughts.
How this differs from vanilla industrial bridge
| Industrial NNN | Cannabis-tenant RE | |
|---|---|---|
| Takeout pool | Bank / CMBS deep | Narrow — private credit common |
| Leverage | 65%–75% typical | Often 55%–65% |
| Diligence | Phase I, clear height | License + security + power |
| Rent proof | Standard lease | Cannabis clauses + transfer risk |
Start with industrial warehouse loans for shell and lease metrics, then layer cannabis-specific license and security diligence from the sections above.
Underwriting mistakes sponsors make
- Pitching plant revenue as if it were NOI without a real-estate lease
- Ignoring local buffer zones from schools and parks
- Underestimating security and insurance CapEx
- Assuming a standard industrial bank refi will clear at maturity
- Closing on a building before confirming cultivation or retail use is allowed at that address
Related financing guides
- Industrial warehouse property loans
- Special-use commercial property loans
- Retail strip center loans
- Commercial property loans by asset class
Get approved · Commercial real estate financing · Submit scenario · (833) 264-7776
Rates, terms and conditions offered only to qualified borrowers and are subject to change at any time without notice. Cannabis-related real estate is evaluated deal-by-deal where state licensing and collateral support the file. Jaken Finance Group does not finance illegal activity. All loans are subject to full underwriting.