Twain Closes $136 Million Ground Lease to Complete Renewable Diesel Refining Facility
A $300 million renewable diesel refining facility cleared one of its remaining hurdles when it secured funding for the final phase of construction.
Twain Financial Partners has closed on a $136 million ground purchase and leaseback arrangement for the Reno facility, marking the largest investment in Twain’s nine-year history. The latest phase of construction will include a feedstock pretreatment facility, wastewater treatment facility, and an energy recovery system.
![Reno Ground Lease](https://twainfinancial.com/wp-content/uploads/2022/04/Reno-Ground-Lease.jpg)
The facility, which is expected to be completed by November 2022, will be able to produce 3,000 barrels of renewable diesel per day. Renewable diesel is a biofuel produced from fats and oils that is chemically the same as petroleum diesel.
The deal continues Twain’s run of recent significant ground lease capital investments, which includes $90 million in financing for an apartment project in Cleveland, Ohio, and $50 million in financing for a hotel project in Alexandria, Virginia. It’s also another foray into the renewable energy sector after Twain closed on $42 million in financing earlier this month for a solar farm in Texas.
“Our ground lease product has been very attractive to developers because it operates like a flexible bridge loan,” said Will Purdy, Twain’s Director of Real Estate. “By providing the unique option to buy back the land after a few years, and at a fixed, predetermined price, sponsors get all the short-term benefits of ground lease financing without the long-term commitment.”
The project is being developed by New Rise Renewables Reno, LLC.