X-Caliber and affiliates close $33.5m deal for almond facility in Madera, CA

X-Caliber, a national direct commercial real estate lender specializing in impact lending, has announced a landmark $33.5 million combined transaction in partnership with its affiliate companies, X-Caliber Rural Capital (XRC) and CastleGreen Finance. The transaction involves refinancing, new facility construction, and a renewable energy system for California Custom Processing (CCP) in Madera, California.

Through the U.S. Department of Agriculture (USDA)’s Food Supply Chain Guaranteed Loan Program, XRC contributed $29.5 million to the deal. An additional $4 million was provided by CastleGreen through the California Statewide Communities Development Authority – Open PACE Program. This significant financial collaboration marks X-Caliber as the only lender in the U.S. offering a potent blend of long-term, competitive financing through both C-PACE and USDA loans. Mike Hammond, X-Caliber’s Executive Managing Director of Origination, originated the loan.

CCP, a leading player in California’s thriving almond industry, currently operates a 65,000-square-foot processing facility. The USDA loan will be primarily used for refinancing existing debt and funding the construction of an adjacent building that will span 52,500 square feet. Jordan Blanchard, Co-Founder and Executive Manager at X-Caliber Rural Capital, stated, “The combination of USDA and C-PACE financing delivers a competitive package that benefits both the environment and job retention in the Madera community.”

The CastleGreen-financed C-PACE structure is earmarked for renewable energy improvements, including a rooftop solar array and battery storage for CCP’s existing facility. The solar system is projected to produce 1.5 million kWh annually, offering a CO2 emissions reduction equivalent to 1,067 MT/year and electricity bill savings estimated at over $14.3 million over the system’s lifetime.

Sal Tarsia, Managing Partner at CastleGreen Finance, mentioned, “This financing supports California’s critical almond industry with sustainable energy design while significantly reducing operational costs. It’s a win-win economic and environmental solution.”

California is the world’s leading almond producer, contributing to 80% of the global supply. CCP offers comprehensive almond processing services, including blanching, steam pasteurization, dry roasting, and more. Leighton Allen, CCP’s Chief Financial Officer, lauded the hybrid financing as a long-term, cost-effective solution that supports local employment and environmental sustainability.

The new expansion is scheduled for completion by 2025 and is anticipated to retain 48 full-time jobs. This follows X-Caliber’s previous $52 million transaction in October 2022, further solidifying its commitment to the almond industry and innovative financing solutions.