Westbrook’s Vertical Harvest faces foreclosure
Vertical Harvest Faces Foreclosure Over $8 Million C‑PACE Loan
A hydroponic farm in Westbrook is confronting a looming foreclosure after a creditor filed a complaint last month over an unpaid C‑PACE loan of more than $8 million.
Vertical Harvest, a vertical‑farm operation located at 5 Vertical Way in Westbrook, entered into a Community Property‑Based Assessment (C‑PACE) financing agreement with the city of Westbrook and Greenworks Lending LLC in December 2023. The deal called for the company to repay roughly $8.25 million over 22 years at a 12 % annual interest rate. The loan was secured by a lien on the property, which outranks most other liens—except municipal property‑tax, sewer, sanitary, and water liens.
In March 2024, Greenworks sold the loan and transferred its C‑PACE rights to Foundation Infrastructure Debt Fund I LP, a debt‑fund vehicle that now holds the lien. The financing amount was subsequently revised to about $8.66 million. The loan’s interest rate is set to rise to 18 % in 2028. Genisys Credit Union, the mortgage lender on the property, signed a Mortgage Lender Consent acknowledging the priority of the C‑PACE lien.
The complaint, filed by Foundation Infrastructure Debt Fund I LP, seeks foreclosure on the subleasehold and the farm’s improvements. Because Vertical Harvest does not own the land outright, the creditor is targeting the company’s rights under the sublease. If the court approves the foreclosure, the subleasehold interest and the farm’s infrastructure could be sold to satisfy the debt.
“The back interest on the C‑PACE assessment has been paid and the account is current,” said Vertical Harvest CEO Nona Yehia in a text message Monday night. “We have been in direct contact with the lender throughout, and we expect the complaint to be resolved now that the balance is current.” Yehia also noted that the farm remains operational and is supplying customers statewide through Native Maine Produce and Specialty Foods.
The amount that Vertical Harvest still owes is unclear. The company may have made partial payments, and there may be additional charges or fees that have not yet been disclosed. The foreclosure action could be avoided if the company settles the debt or reaches another agreement with the C‑PACE lender.
Vertical Harvest has faced other financial challenges in recent months. In December 2025, the farm was sued for allegedly failing to reimburse a broker who had secured an almost $50 million federal loan to launch the venture. That same year, the city of Westbrook filed a $45,000 tax lien against the company for unpaid taxes.
The C‑PACE program is intended to provide low‑cost, long‑term financing for qualifying energy‑efficiency improvements on commercial properties. Projects are funded by private capital providers and collected through the property‑tax system, giving the financing a priority status over most other liens.
“The farm is operating, our team is at work, and we are supplying customers throughout the state,” Yehia added in a separate statement.
The outcome of the foreclosure complaint remains uncertain. A court‑approved sale could liquidate the farm’s subleasehold and its built‑up infrastructure. Alternatively, a negotiated settlement could keep the farm’s operations intact.
Maine’s agriculture community, which has embraced vertical farming as a way to extend growing seasons and reduce water use, watches closely as this high‑profile case unfolds. If Vertical Harvest’s future hinges on its C‑PACE loan, the decision could have ripple effects for other growers seeking similar financing arrangements.
