Chicago Atlantic Real Estate Finance, Inc.
We are a newly formed commercial real estate finance company – a real estate investment trust (REIT) – dedicated to making loans to leading operators and property owners in the cannabis industry. We are externally managed by Chicago Atlantic REIT Manager, LLC (our “Manager”). We intend to elect to be treated as a REIT for U.S. federal income tax purposes commencing with our taxable year ending Dec. 31, 2021. Our Manager and its affiliates seek to originate real estate loans between $5 million and $200 million, generally with one- to five-year terms, and amortization when terms exceed three years. We generally act as co-lenders in such transactions and intend to hold up to $30 million of the aggregate loan amount, with the remainder to be held by affiliates or third- party co-investors.
We believe that cannabis operators’ limited access to traditional bank and non-bank financing has provided attractive opportunities for us to make loans to companies that exhibit strong fundamentals but require more customized financing structures and loan products than regulated financial institutions can provide in the current regulatory environment. We believe that continued state-level legalization of cannabis for medical and adult use creates an increased loan demand by companies operating in the cannabis industry and property owners leasing to cannabis tenants.
Note: Revenue and net income figures (in the IPO Profile chart) are for the six-month period from the REIT’s date of inception on March 30, 2021, through Sept. 30, 2021, the prospectus says.
John Mazarakis, the executive chairman of our board of directors, co-founded Chicago Atlantic Group in April 2019. He has served as our executive chairman since our inception in March 2021. As a proven entrepreneur and operator with successful ventures in real estate, retail, and hospitality. Mr. Mazarakis brings over 20 years of entrepreneurial, operational, and managerial experience.
Anthony Cappell is our CEO and a director. Mr. Cappell co-founded Chicago Atlantic Group in April 2019. He has served as our CEO since our inception. Before founding Chicago Atlantic, Mr. Cappell was a managing director and head of underwriting at Stonegate Capital, a private credit investment firm focused on lower middle-market businesses and emerging brands from July 2016 to October 2018.
We do not have any employees. Our loans are sourced and overseen by the members of our Manager’s team, which as of Nov. 22, 2021, consists of 24 investment and other professionals who are employees of our Manager and/or its affiliates and certain of whom are also our officers.
As of Nov. 22, 2021, our sponsor, Chicago Atlantic Group, LLC, and its affiliates, through affiliated private funds and co-investors, had originated and closed 30 loans totaling approximately $649.0 million to companies operating in the cannabis industry, had approximately $318.3 million of loans outstanding, and were committed to fund approximately $120.0 million in additional loans under commitments from existing credit facilities (subject to customary closing conditions).
(Note: Chicago Atlantic Real Estate Finance, Inc., priced its REIT IPO on Dec. 7, 2021, at $16 – the bottom of its $16-to-$18 price range – on 6.25 million shares to raise $100 million.)
|Address||420 North Wabash Avenue, Suite 500 Chicago, IL 60611|
|Phone Number||(312) 809-7002|
|View Prospectus:||Chicago Atlantic Real Estate Finance, Inc.|
|Revenues||$5.3 mil (last 12 months)|
|Net Income||$5.14 mil (last 12 months)|
|Price range||$16.00 - $16.00|
|Est. $ Volume||$100.0 mil|
|Manager / Joint Managers||JMP Securities/ Compass Point/ Oppenheimer & Co./ Lake Street Capital Markets/ East West Markets|
|Expected To Trade:||12/8/2021|
|Quiet Period Expiration Date:||Available only to Subscribers|
|Lock-Up Period Expiration Date:||Available only to Subscribers|
|SCOOP Rating||Available only to Subscribers|
|Rating Change||Available only to Subscribers|