Grass Valley CA Warehouse Purchase

George Says: "I love this deal. Yum. Be careful. Past performance is are no guarantee of future results; but we have had great luck making loans on cannabis-related properties. Lastly, this is a California property, high enough into the cold and snow belt to discourage the zombies."

Blackburne & Sons is pleased to present this purchase money first trust deed secured by a 9,800SF industrial warehouse on a 1.07-acre lot, located in Grass Valley, Nevada County, California.

The purpose of this loan is to purchase the subject property in the amount of $1,480,000. The borrower will be bringing approximately $548,000 cash to close, including closing costs.

COUNTY INFORMATION

Nevada County is a county located in the U.S. state of California, in the Sierra Nevada. As of the 2020 United States census, its population was 102,241. The county seat is Nevada City. Nevada County comprises the Truckee-Grass Valley micropolitan statistical area, which is also included in the Sacramento-Roseville combined statistical area, part of the Mother Lode Country. Nevada County is home to the Empire Mine State Historic Park, which is the site of one of the oldest, deepest, and richest gold mines in California. The mine operated for more than 100 years and extracted 5.8 million ounces of gold before it closed in 1956.

CITY INFORMATION

Grass Valley is a historic city in Nevada County, California, known as the centerpiece of the state's Gold Country. Situated at 2,500 feet in the foothills of the Sierra Nevada Mountain range, it blends 1850s mining history with a modern, artistic community. As of 2026, it is a bustling hub for tourism, wineries, and culture with roughly 14,000 residents. This northern Gold Country city is 57 miles by car from Sacramento and 88 miles west of Reno.

SUBJECT PROPERTY DETAILS

The subject site is a single parcel containing 1.07-acres. It is rectangular in shape and level in topography. The surrounding land uses primarily consist of industrial developments, with supporting retail and office uses, as well as residential development in the surrounding neighborhoods. The property is located a block and a half away from the Nevada County Airport and situated in the highly desirable Loma Rica Industrial Park, which has almost no vacancy. The subject is accessed from Loma Rica Drive.

The site is improved with a 9,800SF warehouse building that is zoned light industrial. The building is a single story and was built in 1988. It is equipped with a poured concrete slab foundation and steel framing and exterior walls. It features 18ft clear height, 1,000 amps of 3-phase power, 3 grade-level doors, a 600SF office, 9,200SF of warehouse space and a large fenced yard space (approx. 15,000SF). The office space has ceramic tile flooring and the warehouse has concrete flooring. The grade-level doors are located on the side and rear of the building, allowing for drive-thru access to the fenced yard space. The building has 12 onsite parking spots.

The property is currently occupied by the seller’s business and is used as a metal fabrication shop. The seller has elected to stay in the property for 90 days on a leaseback and will pay $3,500 in monthly rent to our buyer. Once the seller vacates, the buyer will move his cannabis business into the property.

The buyer will be holding title through a California Limited Liability Company (LLC), of which he is sole member. This LLC serves as a real estate holding entity and was formed in October of 2025. It reports its income through the borrowers’ personal tax returns.

Our guarantors are husband and wife and will both provide a personal guarantee on this loan. They report a net worth of $13,461,689.48 and have mid-credit scores of 792 and 754. He works as an entrepreneur and runs a cannabis business and she is a registered nurse, but currently works for the cannabis business as Chief Operating Officer. Together, they reported an adjusted gross income of $1,034,830 in 2025 and $632,702 in 2024.

The borrower runs a successful cannabis business that reported net income of $1,674,242 in 2025 and net income of $1,102,625 in 2024. However, it should be noted that this entity is not guaranteeing this loan. His current cannabis manufacturer’s license is valid until March 26, 2027 and is for adult and medicinal use.

We hired a MAI appraiser who valued this property at $1,480,000 (AS-IS). We also hired a local broker to perform a Broker’s Price Opinion (BPO) who valued the property at $1,500,000.

At an 11.0% yield to investors and a 69.0% LTV (AS-IS) and 69.0% LTV Purchase Price, this appears to be a reasonable investment. Investing in any first trust deed involves substantial risk, so be sure to read the Risk Factors section of the Offering Circular carefully before investing. A large and prolonged decline in real estate values is possible. Foreclosed commercial properties almost always need to be renovated before they can be leased or sold, so be sure to maintain some liquidity.

ACCREDITATION STANDARDS

Please note this offering is a SEC Regulation D filing and will be done through a Private Placement Memorandum. In order to invest, you must be an accredited investor. Generally speaking, an accredited investor is an individual:

(a) whose individual income exceeds $200,000 in each of the past two years, with reasonable expectation of reaching the same going forward OR
(b) whose joint income with spouse exceeds $300,000 in each of the past two years OR
(c) your NET WORTH exceeds $1,000,000 (exclusive of your primary residence) OR

If you plan on investing through an entity, the entity can qualify if ANY of the following are met:

(a) all equity owners must be accredited OR
(b) any trust with more than $5,000,000 in assets OR
(c) ERISA with either $5,000,000 in assets OR a bank, insurance company, or registered investment advisor as it's trustee OR
(d) any self directed ERISA with an accredited investor(s) making the business decisions OR
(e) an IRA owned by an accredited investor

You should spread your mortgage investment portfolio out among lots of different deals. If you have $300,000 to invest, you should invest $10,000 to $20,000 in 15 to 20 different fractionalized first trust deeds. For example, if the deal is a $300,000 first trust deed on an office building in Boise, with a $15,000 investment you would own 5% of the loan. By spreading your money out into a bunch of different deals, you are achieving the diversity of a fund without the failed fund sponsor problem. If you are extremely wealthy, you could double (or even triple) my suggested investment amounts, but be careful about pouring too much money into a single deal. We once had a whole building fall into an old coal mine. Ouch.
Be wise and resist investing in any first trust deed yielding more than 9%. I would personally never invest in a first trust deed with a double-digit yield. The payments slowly grind the borrowers into the dust.
Blackburne’s Law theorizes that a portfolio of 8% and 9% first trust deeds will outperform a portfolio of 11% and 12% first trust deeds over a seven-year term. Only our wisest (and eventually the happiest) investors listen to me.
You can also buy some of our smaller deals in their entirety, but I only recommend this if you are richer than Crassus.
It is very easy to lose money in hard money first mortgages, so fight-fight-fight against the temptation to invest in high-yield deals. As Nancy Reagan used to say, “Just say no.” But if you choose 7% to 9% first mortgages, I predict that you will be very, very pleased.
During the S&L Crisis, commercial real estate fell by 45%. Within three years of hitting bottom, values reached new highs. During the Dot-Com Meltdown, commercial real estate fell by 45%. Within three years of hitting bottom, values reached new highs. During the Great Recession, commercial real estate fell by 45%. Within three years of hitting bottom, values reached new highs. Some time in the next decade, we will have another opportunity to snatch up prime commercial real estate at a huge discount. You will be terrified, but when Blackburne and Sons invites you to join a syndicate to buy a nice commercial property at a 35% discount off its prior high, just remember that the best time to invest is when blood is running in the streets. Why not when real estate has fallen by 45%? You’ll never catch the very bottom because historically the bounces off the bottom happen much too fast. Bounce-soar. You will be terrified, but just remember that the best time to invest is when blood is running in the streets.

Blackburne & Sons Realty Capital Corporation--For more information, contact Justine Smith
555 University Ave., Suite 150, Sacramento, CA 95825
Telephone: (916) 338-3232 * Fax: (916) 338-2328
Real Estate Broker -- California Department of Real Estate -- License Number 829677 -- NMLS Number 103430
Publicly advertised to California residents only under California Department of Business Oversight business plan permit.
Return to C-Loans Home Page | Return to Blackburne & Sons Home Page
Copyright © 2026 Blackburne & Sons Realty Capital Corporation. All rights reserved. (800) 606-3232