X-Caliber, CastleGreen Lend $52M on California Almond Cold-Storage Facility Build
Origo Investments has secured $52 million of construction financing to build a cold-storage almond asset in Northern California, Commercial Observer can first report.
X-Caliber Rural Capital, a subsidiary of X-Caliber Capital, provided a $35 million loan through the U.S. Department of Agriculture’s (USDA) food supply chain program for the planned Origo Cold Storage facility in Madera, Calif. CastleGreen Finance also supplied $17 million of Commercial Property Assessed Clean Energy (C-PACE) financing for the project through the California Statewide Communities Development Authority PACE Program.
“We are pleased to provide long-term financing for a much-needed facility to the robust almond-growing industry,” Jordan Blanchard, X-Caliber Rural Capital co-founder and executive manager, said in a statement. “The combination of this USDA food supply chain loan plus C-PACE financing provides a competitive lending solution that supports energy efficiency, the creation of permanent jobs and overall economic growth in the Madera community.”
Mike Hammond, executive managing director at X-Caliber Capital, originated both loans.
Located at 2647 Condor Road 25 miles from Fresno, the climate-controlled facility is aimed at helping to further grow California’s almond industry. Almonds are harvested within a three-month period and require cold storage until they are ready to be used by processors.
The new facility, which is slated for completion in April 2023, is designed to save Origo Investments a total of $3.7 million over the lifetime of the improvements through reducing electricity and water usage as well as reducing carbon dioxide emissions. It is projected to create up to 10 new full-time jobs.
“CastleGreen is pleased to participate in this project that allows C-PACE to double down on community benefits by helping promote environmental and food supply chain advantages,” Sal Tarsia, managing partner at CastleGreen Finance, said in a statement. “The state-of-the-art facility will incorporate features that significantly reduce greenhouse gas emissions, decrease water and energy consumption, and pass along substantial cost savings to the borrower.”
Origo Investments declined to comment.
Andrew Coen can be reached at email@example.com.