Red Oak Capital Holdings, LLC has provided a $9.75-million bridge loan for the Panda Biotech High Plains Hemp Gin facility in Wichita Falls, TX. The loan refinances an existing Red Oak loan that has performed as agreed since its initial origination in 2021. The new financing allows the sponsor to continue operations at what is projected to be the largest industrial hemp processing facility in the world.

Closed under Red Oak’s Core-Plus Bridge Loan Program, the loan carries a two-year term, 10.50% all-in interest rate, and an LTSV of 34.90%. Regional Manager Nick Jans originated the loan alongside Senior Underwriter Hermann Wendorff and Senior Loan Administrator Jesus Martinez. The transaction was brought to Red Oak by BMC Capital’s Grant Garlock and Miles Kallial on behalf of the sponsor, Panda Biotech CEO Robert Carter, who plans to transition the Red Oak loan into lower-cost permanent financing following full stabilization of the property.

Situated on 97 acres at 8600 North Central Freeway, the 472,903-square-foot industrial complex consists of seven buildings and 630 parking spaces. Originally built in 1978 and acquired by the borrower in 2021, the facility has gone through more than $34 million in renovations, including a full roof replacement, HVAC and plumbing upgrades, and the rehabilitation of a railroad spur. The improvements have modernized the property for Panda Biotech’s operations, which focus on processing domestic-grown hemp straw into mechanically cottonized fiber and hurd for use in textiles and other industries. At full capacity, the facility is projected to process over 150 million pounds of industrial hemp annually.