Venture West Secures $17.5 Million Refinance Loan for Cannabis Firm Cal Grow’s Headquarters

LOS ANGELES- In a significant move underscoring the growing financial robustness of the cannabis industry, Venture West Funding, a California commercial mortgage broker, has successfully arranged a $17.5 million refinance loan for Cal Grow, a leading cannabis company. This strategic financial maneuver is poised to bolster Cal Grow’s operations, centered in King City, California.

Cal Grow’s facilities, covering an impressive area of approximately 400,000 square feet, represent a fully integrated hub for cannabis-related activities, encompassing cultivation, manufacturing, and distribution. This extensive operation highlights the scale and sophistication of the company’s footprint in the cannabis sector.

The loan, a substantial amount of $17.5 million, was provided by Hanmi Bank, a Korean American financial institution based in Los Angeles. This collaboration between a niche cannabis company and a traditional bank illustrates the evolving relationship between the financial sector and the cannabis industry, which has long faced challenges in securing funding due to regulatory complexities.

Venture West principal Matt Douglas emphasized the custom-tailored nature of the loan, noting Hanmi Bank’s adaptability in structuring a suitable loan agreement amidst the current challenging market conditions. However, the specifics of the loan terms agreed upon with Cal Grow remain undisclosed, adding a layer of privacy to this financial agreement.

Based in El Segundo, Venture West Funding has established itself as a specialist in securing mortgage loans for a variety of properties, including apartment buildings, commercial properties, and single-family homes. The broker’s diverse client base and its remarkable achievement of surpassing $12 billion in loan originations over the past two decades stand testament to its expertise and reputation in the mortgage lending sphere.

This latest financial transaction not only marks a milestone for Cal Grow but also signifies a broader acceptance and integration of the cannabis industry within the mainstream financial sector. It reflects a maturing market where cannabis companies are increasingly viewed as viable and valuable clients by traditional financial institutions.