Cannabis Commercial Real Estate

[Craig Piatti]

Who's investing in cannabis real estate?  Would be interested to see what you are seeing, discuss returns, outlook for the future.

[Nina Grayson]

I've been building my network here in Southern CA and throughout the Nation.  On the buyside during the recent Phase 2 Social Equity licensure for Retail, pre-licensees were frenzied to find properties.  Several are partnering with the big franchisee syndicated Cana Cos, who are buying the asset and leasing to the new licensee with a share of profit agreement.  Now we are in Phase 3 in SoCA, and acquisitions interest is not slowing down, but the biggest hurdle is broker/buyer sensitive use market and property knowledge.  I lost a $1,45mm deal because of a non-operational daycare that was a few blocks from the subject property.  The day-care was still actively licensed, so at anytime it could have the minimum required enrollment to resume operations.  Thus, the location did not meet sensitive use.  The listing agent and owner had it off market promoting it as a Cana opportunity, but they did not do their DD pre-listing.  So, brokers need to know the zoning, how many licenses and types can be issued in a sub-market, and they need to do their DD before listing.  Fortunately I love research and crossing T's and dotting I's, so I know how to suss out properties and qualify them for my cash paying Cana buyers.