Cannabis-Rx purchases light industrial and commercial real estate properties in the 20,000 sq. ft. range, with the purpose of leasing them to licensed marijuana businesses operating in Colorado and Washington, as well as other states that permit the use and/or growth of medicinal marijuana.
In order to attract cannabis-related tenants to lease our properties, we are willing to renovate these spaces based on the requirements of the business, and incorporate these additional costs into their lease. For example, if it is a grow facility we will provide significant electrical, HVAC, and security upgrades. Often these tenant improvements are the responsibility of the leasee. However, Cannabis-Rx is willing to facilitate these improvements by offering to consult on the build-out of their facility and/or capital based on the needs of the tenant, the term of the lease, and their business model.
In the marijuana space, tenants typically pay a 30 – 40 percent premium to lease space to operate in, simply due to the nature of the business. We offer our space at a lesser premium to the usual 30 - 40 percent. Our targets are 20 - 30 percent.
What that means is that Cannabis-Rx will help tenants set up their facility, help finance their operations, and package these expenses with the clients’ other monthly costs. We look at this as a win-win strategic long-term partnership.
Cannabis-Rx will provide financing options with licensed or existing operators within the marijuana industry that require start-up, operating or expansion capital, i.e. we recently invested in a licensed grow operation that needed funding to finish construction on their facility in order to commence operations.
We will also provide capital to current and potential tenants of our buildings that require funding to refinance current debt, as long as they meet our underwriting criteria.
Additionally, we offer sale-and-leaseback financing arrangements with tenant purchase options. These types of financing solutions provide flexibility for our tenants long-term, while capitalizing their operations.
Through our network of experts – legal, licensing, construction, growing, etc, we provide consulting services to our tenants in the marijuana industry trying to navigate the real estate/zoning process and/or regulatory environment. We provide counsel to help businesses set up their grow operations.Specifically, we can provide guidance/counsel regarding construction management and grow design (electrical, HVAC, lighting, etc.). We are also looking into providing regulatory compliance consulting.
We charge for our consulting services as a one-time fee, or on an on-going basis.