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Business Capital Structures $25MM Loan for Agricultural Land & Real Estate Developer

September 22, 2016, 07:29 AM
Filed Under: Real Estate

Business Capital announced that it structured and delivered a $25 million mezzanine loan for an agricultural land and real estate development company. Business Capital's client is a third generation farmer who has been involved in agriculture and real estate development for over 30 years. He successfully acquired a portfolio of land in the Central Valley of California, including over 17,000+ acres used to farm cherries, apricots, peaches, almonds, and for grazing.

The client is also a real estate developer, completing 830 acres of a commercial “Business Park” property. Of this, 91 acres were sold to a buyer for $15 million who built a 1.5 million square foot distribution center for a major furniture and home goods business. He currently manages the remaining commercial and agricultural assets.

Inclement weather and prolonged drought in California had an adverse impact on crop yields and the business. The improved climate and increased productivity of crops, combined with highly favorable real estate values in this state, all signs and expectations show a significant return to profitability.

Business Capital was introduced by the client’s turnaround/accounting firm and was able to clearly underwrite the complexity of the seasonality, asset mix, and strategic restructuring plan to secure the mezzanine loan necessary to provide increased liquidity. This will allow the client to move forward with operations and realize expected revenue growth.

"Business Capital was referred to me by my CPA firm and they were immediately able to wrap their arms around a very complicated financial structure and situation. The highly collaborative and client focused team of experts at BizCap under-wrote, structured and delivered mezzanine financing in record time that, quite frankly, saved my bacon at a critical juncture for my business. I am currently working with them on other opportunities,” said Jeff Arambel, the farmer/land developer.

"Farmers are a critical part of our country's well being -- past, present and future. Supporting our farming systems is a necessary and powerful strategy for revitalizing our economy and ecosystem. We were privileged to assist our agriculture client at a crucial crossroads.  This transaction is a prime example of the value our firm can add by providing rescue financing in a short time frame," explains Chuck Doyle, director at Business Capital.

Business Capital is a leading commercial finance and  debt restructuring firm specializing in securing customized debt based solutions for rapidly growing as well as challenged small and middle market companies nationwide who require a unique, timely and tailored financing structure to address their particular needs, especially in situations where conventional capital sources are not an option.

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