FUELING GROWTH THROUGH REAL ESTATE

Alta is a real estate fund that deploys capital into property acquisitions and asset-backed credit facilities that generate annual returns of over 12%. Alta targets industrial and retail assets within an hour of major US cities to create a "last mile" commercial real estate portfolio. All assets in Alta's portfolio are utilized for legal cannabis operations with established, creditworthy cannabis companies, which generate outsized yields due to the lack of institutional capital available to the burgeoning industry.

  

Alta is raising $100M to capture high-value cannabis real estate opportunities across the United States in markets where cannabis has been legalized for medical or adult use. Alta has already raised and deployed $40M into eleven transactions with a blended unlevered, annual return of 12.5%.

 

THE ALTA REAL ESTATE FUND

Alta's thesis is to use real estate as a vehicle to finance legal cannabis companies that need growth capital. In each transaction, Alta conducts rigorous due diligence, financial analysis, and in-person site inspections with all operators. Alta secures a robust collateral package and outlines strict events of default in all transaction documents, ensuring adequate downside protection in case of non-performance. Alta also ensures all real estate assets are well-priced based on non-cannabis sales comps rather than income-based valuations or "green-zone" price premiums. This provides Alta's investors with ample risk mitigation because the bricks can be leveraged and redeveloped for other industries if the cannabis sector is rendered non-viable.

MORTGAGES & SALE-LEASEBACKS

Alta structures favorable, longterm leases with cannabis tenants that need real estate or off-balance-sheet financing. 

  • Acquire strategically-located retail sites and industrial warehouses with no development risk.

  • Lease assets to established operators for 10+ years at a 12-13% cap rate with 3% annual increases.

  • Require the cannabis tenant make an equity investment into the property, aligning interests and providing additional collateral to Alta.

  • Provide tenants with an annal purchase or buyback option that guarantees a minimum IRR to Alta.

  • Upon federal legalization and cap rate compression, mortgage the portfolio to generate levered returns.

  • Alta has an exclusive partnership with CannaMLS, giving the fund first look at over $5.2 billion in cannabis real estate opportunities nationally.

ASSET-BACKED CREDIT FACILITIES

Alta structures term loans with creditworthy cannabis operators that have strategic real estate assets to leverage.

  • Extend asset-backed loans at a max loan-to-value (LTV) of 70% based on non-cannabis sales comps.

  • Typical loans are 2 - 5 years at a 12-13% interest rate with standard structuring fees and prepayment penalties.

  • Additional collateral may be required on a case-by-case basis, including personal and corporate guarantees.

  • Include negative covenants that restrict additional debt or change of control throughout the loan term.

  • Require loan proceeds be used for growth initiatives or uses that will enhance the borrower's ability to service the debt, such as construction, working capital, or refinancing.

  • These credit facilities do not provide a future mortgage opportunity, but they do allow Alta to recycle capital more quickly and diversify its income streams.