We have more than one real estate developer/investor interested in finding cannabis tenants and are willing to buy, or build, buildings on parcels with qualified tenants.
They require qualified tenants and by qualified they mean businessmen who have a success story, preferably in the cannabis industry. If not, a the tenant should have a strong history outside of it. Our investors/developers are focused on the operators history of meeting their goals, scaling a business, and financial responsibility.
What do investors/developers require?
- Historical Success
- Previous businesses or operations
- Executive team and site management team introduction and bio’s
- Operations History – full financials and milestone achievement
- This will include a business plan and a timeline that shows when they achieved each of their goals in comparison with what they had planned.
- Business Scope and Long Term Plan
- Vertically integrated business with plans to expand the operation at this location.
- Contracts or Distribution Network
- If there are retailers or clientele in the chain that needs more of your product
- Current Financials
- What you as an operator will spend on build out
- How much is allocated for the lease and your terms during construction
- Lease Terms
- 5-15 year lease terms, lease will be calculated depending on an initial cap rate and a maximum capacity cap rate.
- Personal or corporate guarantor, for the duration of the lease.
What does the operator get out of it?
- A financial partner that will back any real estate necessities from acquiring buildings to building whatever structure is required for expansion on land.
- Many of these developers have secured agreements with operators nationwide, and are excited about the industry.
- A pro cannabis landlord that will provide full support for licensing and any architectural requirements.
- Helps with CUP amendments for new state license applications.
- A built to suit property if done on a parcel, that meets all the requirements of the operator.
- Perfect for those who are automating 3 or 4 tier cannabis operations or have other requirements such as cogeneration or multiple C1D1/D2 rooms.
Qualifying takes a couple weeks, and requires three meetings with the developer/investors.
Have all your above documentation and information available to make the process go smoothly.