AFC Gamma Inc., a commercial-mortgage real-estate investment trust (“REIT”), announced today that it has completed a first close of its $200 million investment vehicle, having raised approximately $80 million of equity from over 20 large family offices. Additionally, AFC Gamma has a credit line of up to $40 million, providing the REIT with approximately $120 million of capacity to lend to cannabis operators.
With companies in the industry continuing to face challenges accessing capital, AFC Gamma was founded to fill a void in the market by providing funding that these companies need to expand and operate their businesses. The company has already provided debt financing for five companies, including dispensaries, cultivators, processors, and combined operations. To date, AFC Gamma has funded about $50 million in six transactions across five borrowers and has committed approximately an additional $30 million, to its existing borrowers and to two new loan originations closing shortly.
“We are very pleased that more than 20 respected family offices joined us as shareholders in AFC Gamma,” said Leonard Tannenbaum, the company’s Chief Executive Officer. “We are continuing to execute on our pipeline of more than $300 million in potential transactions and adding additional employees to our experienced team in West Palm Beach, Florida.”
Jonathan Kalikow, Head of AFC Gamma Real Estate, added, “Advanced Flower is unique in its combination of cash-flow underwriting, leveraging Len’s quarter-century of expertise in this area, and my significant real-estate lending experience. The combination of quality real estate and regular cash flow provides additional safety and security for our investors in this high-growth industry.”
About Advanced Flower Capital Management, LLC
AFC Management, LLC is an institutional lender to leading companies with strong and growing operations, cash-flow prospects and real-estate security, in states with favorable supply/demand fundamentals and pro-growth legislative environments. AFC’s platform provides innovative and customized financing solutions. The members of the senior management team of the company have over 25 years of experience in disciplined credit investing across a range of economic cycles.
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