Fident Capital secured a $4.8MM cash-out, line of credit (62% LTV) on a 42,941 SF, 14-unit industrial condo park in Anacortes, WA. The transaction was driven by a San Diego-based wealth management firm executing an estate planning strategy for its high-net-worth client, the property’s retired owner-builder, who held the asset free and clear. An Eastern Washington credit union provided the 2-year, interest-only facility at WSJ Prime plus 50, with no prepayment penalty to allow for a future sale. The structure includes pay-down and redraw flexibility under the line, and the loan’s deposit requirement funded from proceeds and parked in a 2.55 money market account, materially reducing capital drag.
The assignment’s primary challenge was a a tenant base that included cannabis operators and the asset’s tertiary Washington market with a thin comp set, both of which materially narrowed the pool of viable lenders. Most conventional capital sources either could not lend on cannabis-adjacent collateral or lacked familiarity with the submarket. Identifying lenders with regulatory comfort and regional knowledge required Fident to build new relationships. Fident leveraged industry channels, including the RECA network and regional brokers, to identify Pacific Northwest credit unions lending against cannabis-tenanted real estate.
A second complexity emerged from the property’s hybrid ownership structure: the borrower (who was the project’s original developer) owned both the landlord entity and the HOA, and had previously sold off two condo units, making historical operating data difficult to disentangle. Fident worked with the wealth management firm to bifurcate landlord-borne expenses from HOA pass-throughs to present a clean P&L to underwriters and the appraiser.
A third hurdle surfaced late in closing when appraisal NOI fell below the level required to support the target loan amount. Fident identified categorized income that the appraiser had excluded and worked with the lender to add it back into the underwritten cash flow. This preserved the full $4.8MM in proceeds.
Fident is pleased to have delivered a tax-efficient liquidity solution that supports the client’s estate planning objectives, providing pre-sale optionality to deploy cash into yield-generating assets.
