Cannabis Real Estate Firm Bangi Appoints Destiny’s Child Founder Chief Marketing Officer

CALIFORNIA: BANGI, INC, a diversified investment vehicle that acquires and leases specialized real estate assets in the cannabis, hemp and CBD industries, today announced the appointment of Dr. Mathew Knowles to the newly created position of Chief Marketing Officer (CMO), effective immediately.  Founder of Destiny’s Child, Dr. Mathew Knowles, is an author, professor, public speaker, entrepreneur, music executive, artist manager and founder of Music World Entertainment, a 25-year entertainment company with over $450 million in record sales.  Dr. Knowles was recently featured in an interview with Forbes Magazine which can be found here.

As the CMO for BANGI, Dr. Knowles will be responsible for developing and overseeing the launch of BANGI’s global marketing campaign, including advertising, branding, communications, content, creative services, digital strategies, press events, social media and the web.  

“As one of the world’s most successful music and entertainment pioneers, Mathew is a relentlessly innovative and creative marketing leader whose experience will ensure our success in the rapidly-growing and dynamic cannabis industry,” said Dr. Neil Parsan, Chairman and Chief Executive Officer of BANGI, Inc.  “Under his leadership, we are looking forward to launching and developing one of the strongest and most trusted brands in the cannabis industry based on our ability to deliver real value to our tenants, partners and shareholders,” concluded Dr. Parsan.

“I have been blessed throughout my career to work with various artists and companies at defining moments in their histories, which is why the opportunity to lead the marketing program at BANGI was so compelling,” said Dr. Knowles.  “BANGI has a strong culture and strategic foundation, and I look forward to leveraging my extensive network and experience to building upon the Company’s momentum through innovative and breakthrough marketing strategies that are designed to achieve sustainable growth and profitability,” concluded Dr. Knowles. 

Innovative Industrial Properties Acquires California Property Portfolio And Enters Into Long-Term Leases With Licensed Operator

Acquisition Represents IIP’s Second Investment in California, Expanding Footprint to 18 Properties in 11 States

CALIFORNIA: Innovative Industrial Properties, Inc., the first and only real estate company on the New York Stock Exchange (NYSE: IIPR) focused on the regulated U.S. cannabis industry, announced today that it closed on the acquisition of a five-property portfolio in southern California, which comprises approximately 102,000 square feet of industrial space. This acquisition marks IIP’s second investment in California, following on IIP’s acquisition in Sacramento earlier this year.

The purchase price for the southern California portfolio was approximately $27.1 million in the aggregate (excluding transaction costs). Concurrent with the closing of the purchase, IIP entered into a long-term, triple-net lease at each property with a licensed operator, which intends to continue to operate the properties as licensed cannabis cultivation, manufacturing, processing and distribution facilities in accordance with California regulations.

As the pioneering real estate investment trust (REIT) for the medical-use cannabis industry, IIP partners with experienced medical-use cannabis operators and serves as a source of capital by acquiring and leasing back their real estate assets, in addition to offering other creative real estate-based capital solutions.

“We are excited to forge this new tenant relationship with one of the preeminent licensed operators in southern California,” said Paul Smithers, President and Chief Executive Officer of IIP. “This operator is a true innovator in the industry, developing a strong brand that is recognized for its consistent high quality, and we are thrilled to team with them as their long-term real estate partner. The California regulated cannabis market is poised for explosive growth in the coming years, as the regulated program continues to roll out and a focus is made on transitioning illicit sales to the regulated marketplace.”

The operator is licensed for cannabis cultivation, nursery, manufacturing, processing, delivery and distribution. With its advanced growing techniques, state-of-the-art facilities and research and development for the creation of new proprietary genetics, the tenant has developed a distinguishing brand in the southern California market, including botanicals, concentrates and accessories.

As of April 16, 2019, IIP owned 18 properties located in Arizona, California, Colorado, Illinois, Maryland, Massachusetts, Michigan, Minnesota, New York, Ohio and Pennsylvania, totaling approximately 1,230,000 rentable square feet (including approximately 159,000 rentable square feet under development/redevelopment), which were 100% leased with a weighted-average remaining lease term of approximately 14.9 years. As of April 16, 2019, IIP had invested approximately $191.3 million in the aggregate (excluding transaction costs) and had committed an additional approximately $34.7 million to reimburse certain tenants and sellers for completion of construction and tenant improvements at IIP’s properties. IIP’s average current yield on invested capital is approximately 14.9% for these 18 properties, calculated as (a) the sum of the current base rents, supplemental rent (with respect to the lease with PharmaCann LLC at one of IIP’s New York properties) and property management fees, divided by (b) IIP’s aggregate investment in these properties (excluding transaction costs and including aggregate potential development/redevelopment funding and tenant reimbursements of approximately $34.7 million).

 

MedMen Real Estate Assets Seed New Investment Vehicle

CALIFORNIA: MedMen Enterprises announced that it has reached agreement to sell a significant portion of its real estate assets to the newly formed Treehouse Real Estate Investment Trust (“Treehouse”). Treehouse is a real estate investment vehicle that capitalizes on the cannabis industry’s continued growth; initial investors include real estate firms New England Development, Samuels & Associates and Visconsi Companies, in partnership with Stable Road Capital.

medmen

The initial transaction includes three properties and is expected to generate approximately $12.5 million of proceeds to the Company after repayment of debt. Additional real estate assets in MedMen’s portfolio are expected to be sold to Treehouse over the next 12 months. The properties sold to Treehouse will be leased backed to MedMen or its subsidiaries at market rates under long-term leases.

“MedMen owns and controls some of the best real estate in today’s burgeoning cannabis industry and they will serve as an important seed portfolio for Treehouse,” said Brian Kabot, chief investment officer of Stable Road. “Given the investor interest in the sector, this vehicle made a lot of sense. More importantly, this creates liquidity and creates an efficient form of off-balance sheet financing to foster further growth for MedMen and others in the industry who wish to grow.”

“Thoughtful property owners across the country have begun to consider the role that cannabis retailers play in their overall leasing strategy, putting Treehouse at the vanguard of an emerging business opportunity,” commented Scott Baker of New England Development. “Many cannabis operators own prime parcels in highly sought after communities, offering a variety of opportunities for return on investment and future development.”

The three initial properties included in the transaction are:

  • MedMen Abbot Kinney – the only cannabis store in what GQ calls the “Coolest Block in America,” 1308-1312 Abbot Kinney Blvd., Venice, California.
  • MedMen Beverly Hills – the store is in a bustling shopping district adjacent to the city of Beverly Hills, 106-110 S. Robertson Blvd., Los Angeles, California.
  • MedMen Downtown Las Vegas – the Company’s first branded store in Las Vegas in the heart of the city’s Arts District and near the Fremont Street Experience, 823 S. 3rd Street, Las Vegas, Nevada.

Pacific Century Holdings Announces $50 Million Real Estate Investment Fund For The Cannabis Industry

WASHINGTON: Pacific Century Holdings Inc., a strategic partner for legalized cannabis operators and investors, today announced the opening of a $50 million real estate investment fund, PCH Fund 1, an investment vehicle capitalizing upon the scarcity of real estate assets for the cannabis industry.

The cannabis industry is poised for significant growth but continues to experience a lack of traditional capital due to disparities in federal and state law. As a result, leasing or acquiring property for marijuana operations is complex, limited and hard to obtain. PCH Fund 1 was established to capitalize on this demand by acquiring, owning and managing specialized agricultural, industrial and retail properties for lease by experienced owners of state-regulated cannabis businesses.

PCH Fund 1 provides investors a unique, geographically diversified portfolio of high value commercial real estate assets. In addition to their value for legalized cannabis businesses based on a current limited supply, properties will be selected based on their potential for strong performance as traditional commercial real estate assets. This will ensure their value continues as the cannabis market matures and the availability of real estate more closely matches industry demand.

To insure proper risk mitigation, the fund is operated by a management team with an expert understanding of local regulations, investment opportunities associated with this market, and deep seeded relationships with compliant cannabis operators. The team is led by Tony Repanich, president and chief executive officer, and Justin Braune, chief business development officer. During his 22-year tenure at Bellingham, WA-based Peoples Bank, Repanich helped grow assets from less than $200 million to nearly $1.6 billion. Braune is a licensed Real Estate Broker in California and was president of MJIC Inc., a diversified operating company in the legal cannabis industry, where he focused on real estate acquisitions.

“We developed a fund strategy that allows investors to take full advantage of the current exponential growth in the cannabis industry, and enables operators to build and develop successful businesses,” said Repanich. “We believe this two-fold approach provides a good platform for outperforming traditional real estate returns. We have assembled a team of industry experts to make prudent capital allocations and manage assets within this complex and rapidly evolving market.”

FutureLand Signs Deal To Purchase 49% of Active Cannabis Grow License in Oregon

OREGON: FutureLand Corp, a leading provider of strategic real estate investment, grow facilities and material solutions to the global cannabis industry, announced today that its subsidiary, FutureLand Oregon LLC, has agreed to purchase 49% ownership in Groovy Groves, LLC, an Oregon recreational cannabis license holder.

Cameron Cox, CEO of FutureLand Corp., said, “This has always made a lot sense to me as we have another site only about 10 miles away with the same partners. So, I’m very happy about this deal. Currently the company has 70+- lbs. curing on the site and ready to be sold from the previous crop worth somewhere between $120,000-$140,000. Getting this license is very strong for FUTL because it finally allows us to begin booking revenue, and I know the shareholders have been waiting for this for a long time. It also puts us in a fairly unique position where, if I’m not mistaken, we may well be the first public company to have a license in the recreational grow market in the entire United States of America. So, this is big news!”

The license is currently a Tier II grow license which allows 40,000 sq. ft. of outdoor grow. This means that we can have 40,000 sq. ft. of flowering plants at any one time. Which also means the company can be vegging and cloning separate from that designated flowering space which gives us a fantastic opportunity to cycle a large amount of marijuana throughout the year. FutureLand will pay $100,000 dollars in stock (10,000,000 shares), based upon the closing price of the company’s common stock on Nov. 14th, 2016, to John C. Miller for his 49% of the Groovy Groves, LLC license.

The company will begin the process of transferring the license immediately which could take a few weeks to accomplish as background checks via fingerprints and the like need to be taken and approved. Once this is completed, the shares will be issued to Mr. Miller and the company will make plans to sell the product to local dispensaries as well as getting various parts of its team up to speed on the seed to sale tracking classes available in Medford, Oregon. In the future, we may modify the license to be either a hybrid of greenhouse and outdoor or simply construct a 10,000 sq. ft. greenhouse for the flowering product. In the end this will likely lift revenues as there won’t be seasonal limitations on growing. Right now we are expecting 2017 revenues on this site to be in the neighborhood of $3,000,000-$4,000,000.

Pot Growers Are Snatching Up Warehouse Space In Denver

COLORADO:  Industrial warehouse space in Denver is suddenly a hot commodity in short supply, as the city’s marijuana farmers look for grow space to help meet the surge in demand for legal recreational pot.

Warehouse space in Denver is now leasing for up to four times the rate it went for before medical marijuana first sent legal pot sales climbing in 2009, the Denver Post reports. At 3.1 percent, the city’s industrial vacancy rate is the lowest it has been in decades.

Denver’s warehouse rush is likely to only intensify, as pot farmers scramble to meet demand that has already stressed the available supply of above-board product since recreational pot became legal in Colorado on Jan. 1. Officials announced this week that the state has already collected $2 million in taxes on $14 million in total recreational pot sales in 2014.