MedMen Announces Completion Of Sale Of Two Properties To Cannabis REIT

CALIFORNIA: MedMen Enterprises announced that it has completed the sale of two properties to Treehouse Real Estate Investment Trust, Inc. with gross proceeds of approximately $33.5 million and net proceeds of approximately $30.6 million after repayment of debt.

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“This is our second transaction with Treehouse and we’ve now freed up nearly $49 million to invest directly into our growth initiatives,” said Adam Bierman, MedMen’s chief executive officer and co-founder.

The properties are comprised of a retail storefront in Las Vegas, Nevada and a cultivation, manufacturing and production facility in Desert Hot Springs, California.

The Las Vegas property is located on Highland Drive near the Las Vegas Strip. The store is scheduled to open later in calendar year 2019. The property is 10,417 square feet and will feature a 30’x70’ LED glass store front. It will be the Company’s largest store to date. Las Vegas ranks as one of the world’s most visited tourist destinations, with more than 42 million visitors in 2018, according to Statista. Nevada legalized adult-use sales in 2017 and revenue for calendar year 2019 are projected to exceed $600 million according to Cowen, Inc. MedMen currently operates three stores in Las Vegas.

The Desert Hot Springs, California, property is comprised of an approximately 45,000 square foot, state-of-the-art Dutch greenhouse offering complete climate control and including manufacturing and production capabilities. The facility recently received its certificate of occupancy and is expected to commence producing the Company’s in-house brands later this year.

 

Legal Pot Growers To Drive Up California Warehouse Rates

CALIFORNIA: Legalizing recreational marijuana in California is creating a gold rush for a decidedly less intoxicating sector: warehouses in which to grow the plants.

Investors have few options to cash in directly on the state’s recent decision to legalize the drug, as there are no publicly traded cannabis producing companies and marijuana remains illegal under federal law. However, they are anticipating a lift in demand for warehouses as legal pot companies search for space to grow their supply.

Shares of industrial warehouse companies such as Prologis Inc, Rexford Industrial Realty Inc and Terreno Realty Corp that have significant exposure to the California market should benefit even if they do not lease to marijuana companies directly, fund managers and analysts say.

This is because cannabis companies are expected to pay above-market rates for older, outmoded facilities that are more suitable for growing plants indoors and storing products containing marijuana, taking out some of the vacancy in an already-tight market and pushing overall rents higher, said Michael Underhill, a portfolio manager at RidgeWorth Capital.

“Cannabis companies are going to find some distressed properties and get them up and running, and in many cases they will have the capital to pay whatever it takes to get space,” said Underhill, adding that this allows companies with more modern facilities to charger higher rents.

Elevator Pitch: Kalyx Development’s Dave Charnick

NEVADA: With over 600,000 square ft of canopy in Colorado, Oregon, Arizona and Washington, Kalyx Development has emerged as a leader in cannabis real estate.

Marijuana Channel One caught up with Kalyx senior exec Dave Charnick on the floor of the Marijuana Business Conference and Expo in Las Vegas.

[youtube http://www.youtube.com/watch?v=eZhRfsJh9Ck&w=560&h=315]

GrowCo Partners 2 Completes Land Purchase

Issues 50% Ownership to Two Rivers

COLORADO: GrowCo Partners 2 completed the purchase of approximately 40 acres of land at 39335 Harbour Road, Avondale, Colorado, the development site for GrowCo’s second greenhouse and an extraction facility. GCP 2 expects to complete its second greenhouse facility before the end of 2016.

In conjunction with completing the land purchase, GCP 2 issued Two Rivers Water and Farming Company 5,100,000 common membershIp interests in GCP 2 representing 50% of the economic interest in GCP 2. GrowCo agreed, as part of the founding and development of GrowCo, to issue Two Rivers a 50% economic interest in each greenhouse facility until GrowCo becomes a public entity.

About GrowCo

GrowCo was formed for the purpose of constructing state-of-the-art computer-controlled greenhouses for licensed marijuana growers. GrowCo is not a licensed marijuana grower or retailer. GrowCo does not “touch the plant” and only provides growing infrastructure for licensed marijuana tenants.

About Two Rivers

Two Rivers assembles its water assets by acquiring irrigated farmland with senior water rights. Two Rivers current farm operations convert feed crop farmland into fruit and vegetable crop production in Pueblo County, Colorado. In November 2012, Colorado legalized the personal use and cultivation of marijuana. As a result, Two Rivers is providing greenhouses and processing facilities for licensed marijuana growers in Colorado on land with water rights not used for fruit and vegetable crop production.