Crescent Lenders Funds $1,150,000 Real Estate Refinance Deal for Property

That Leases to Cannabis Shop

Los Angeles, CA, May 29, 2020 --(PR.com)-- Crescent Lenders, a private money lending business
located in Los Angeles, California, recently closed a refinance deal on a commercial office building
located in Del Rey Oaks, California.

The collateral is a two-story 5,870 square foot building on a 10,500 square foot lot (with ample parking)
and is zoned for commercial use.

A conservative appraisal was completed, valuing the collateral property at $1.75 million dollars.

However, Crescent Lenders believes if this building had been appraised with it's current use and strong
lease the value would be higher and in the $2.5 million dollar range, making it a very attractive deal for
their investors.

Using the $1.75 Million Dollar valuation, a loan of $1,150,000 was made on a 1st Trust Deed Position,
which computes to a 65% loan to value ratio.

The interest rate for this loan is 9.65% and it is to be carried for a term of 24 months. There will also be
an additional 2nd Trust Deed position for $335,000 carried by another lender.

The new tenant is paying $18,000 per month in rent and has a lease option to purchase the property (term
still being negotiated) for $3 million dollars.

Based upon the $216,000 annual rental income for this property and the valuation being at $1.75 Million
dollars, this computes to a little over a 12% capitalization rate before owner's expenses paid on the
property.

The 1st Trust Deed investment was recommended based on a strong equity position and the experience
and financial history of the borrower.

About the Borrower's Business

The borrower has been in the cannabis business for over 30 years, even prior to legalization in the State of
California.

The subject property has all state and city licensing permits to operate legally for cannabis retail sales.

The borrower has three existing cannabis retail locations, of which 2 are in the process of being sold (this
includes subject property) for just over $3 million dollars. This sale is only for the operations of the
business and does not include the properties.

The borrower's exit strategy is to refinance or sell or take some principle reductions from the business

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income.

The property is in an excellent location in Del Rey Oaks, California, adjacent to The City of Monterey
and a 10 minute drive to the luxurious Carmel, California.

About Del Rey Oaks, California

Located in Northern California, Del Rey Oaks has a population slightly over 1600 people and a land mass
area of 0.5 square miles.

The median family income is a little over $70,000 dollars with the median home value being $577,500.

Del Rey Oaks is less than a 15 minute drive to the World Famous Monterey Aquarium which receives
around 2 million visitors per year and produces hundreds of millions of dollars for the Monterey County
economy.

About Hard Money Cannabis Refinancing

The cannabis industry is notoriously underfunded as traditional big banks will not lend to federally
illegal, but state legal businesses like cannabis shops.

Therefore if a cannabis investor wants or needs more cash they will often look to a private money lender
for financing or in this case refinancing.

In this particular case the borrower was able to get a stronger tenant into the property who is paying a
higher rent than the previous tenant, making it a more attractive investment due to this creating a low loan
to value ratio.

Unlike traditional big corporate banks, Crescent Lenders believes in diversity, and supporting all
members of the local business community. While Crescent Lenders does not specialize in loans for
cannabis businesses, they do comprise a small portion of our portfolio.

If you are looking for private money loan and have been rejected by the big corporate banks then visit our
website at crescentlenders.com.

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Contact Information:
Crescent Lenders
Russell Barneson
213-474-3131
Contact via Email
https://www.crescentlenders.com/

Online Version of Press Release:

You can read the online version of this press release at: https://www.pr.com/press-release/813704

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