Medical Marijuana Passes in PA - Governor Signs Into Law

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Medical Marijuana Passes in PA - Governor Signs Into Law

Nick Sabat
Investor / Borrower / Contractor · Pittsburgh, PA · Member since 2016 · 60 posts · 29 votes

Now that the fight for passage of Medical Marijuana Laws in Pennsylvania are over. It seems likely that there will be a greater need for Real Estate to house the production of such Marijuana Plants and services. Along with housing for the employees/owners of this new industry.

This appears to be of interest to many Real Estate Investors for several reasons: To buy and flip commercial properties or to buy and rent out commercial space. Also, if all is said and done as they had pointed out, this will produce some new jobs in Pennsylvania.

What does the production of new jobs and new industry do for the Real Estate Industry as a whole? Well for one - it will bring on a whole new level of people who need housing. Some geographics may change, (in other words - people may migrate to areas with much production of hemp is occurring).

Already I have ran into someone associated with a company that strictly deals with the Medical Marijuana industry - partnership solicitations start @ $1,000,000 dollars. Which speaks loudly as to what is about to transpire within the next few months and years, here in PA.

I already own a 28 x 48 foot building was just waiting for this law to pass. Now the next thing is to consider selling it or renting it out. Should I take on partners to develop it for this specific industry or let the tenant or new owner do so, themselves?

These are just some of the questions that are poised to the Real Estate Investor/Developer/Owners in PA.

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Dominic Lucarelli
Irwin, PA · Member since 2015 · 152 posts · 52 votes
10y

I read the news about that also. They're currently planning to have 125 licensed growers and an undisclosed number of distributers. So unless you've got a gigantic warehouse to use for production, you've got some work to do

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  • Matt R.
    Sherman Oaks, CA · Member since 2013 · 3k+ posts · 2k+ votes
    10y

    @Nick Sabat IDK much about PA MJ but in LA my realtor has a guy who is selling all his multis and trading for MJ warehouses. Apparently, those tenants pay top dollar regular and don't bother the landlord for nada as compared. And multis in LA are usually bigtime winners so if he is trading all of them that says something probably about that niche. Maybe look into buying more vs selling if you can as they get very high rents once approved officially. I think the tenants do all the leasehold improvements too as they are flush with cash probably.

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  • Nick Sabat
    OP
    Investor / Borrower / Contractor · Pittsburgh, PA · Member since 2016 · 60 posts · 29 votes
    10y

    @Matt R. Yes my mind is running through the numbers and the opportunities. Where my building is located, just 3 miles outside of the City of Pittsburgh - my eldest cousin has a store front on the main street into our little area. Makes for a great marriage to any Hemp Growing/Sales situation. Looking to do some great stuff here.

    We erected an addition to my building yesterday with some solar reflective plastic. Designed for roofing, I am experimenting with siding/roofing for a greenhouse type thing. Thanks for the input, let's c how it goes.

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  • Dominic Lucarelli
    Irwin, PA · Member since 2015 · 152 posts · 52 votes
    10y

    I read the news about that also. They're currently planning to have 125 licensed growers and an undisclosed number of distributers. So unless you've got a gigantic warehouse to use for production, you've got some work to do

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  • Nick Sabat
    OP
    Investor / Borrower / Contractor · Pittsburgh, PA · Member since 2016 · 60 posts · 29 votes
    10y

    @Dominic Lucarelli 25 licensed growers and 50 dispenseries. And yes, I have my eye on a bigger prize - a 194.000 sq. ft building for growing and processing - the smaller building is for a dispensary.

    The basics are - growers/processors "a nonrefundable initial application fee of $10,000, and applicants must show that they have at least $2 million in capital, with at least $500,000 on deposit with a financial institution." Dispensaries - may have up to three (3) locations, "a nonrefundable initial application fee of $5,000, and applicants must show that they have at least $150,000 on deposit with a financial institution. Those granted licenses will pay a one-year permit fee of $30,000 for each location, with a renewal fee of $5,000".

    Doesn't say whether or not a grower can or can not be a dispenser. But that's the basics of what is go n on now - it is up to the Dept. of Health to hash out the details of how things will ultimately go here in PA.

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  • Dominic Lucarelli
    Irwin, PA · Member since 2015 · 152 posts · 52 votes
    10y

    I've got a similar location I'm spying close to me. Logistically it's in an amazing location along the RT.30 / I-70 corridor. Just need some business partners. It's hard for a rookie to come up with that kind of capital. Hard, but possible...

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  • Nick Sabat
    OP
    Investor / Borrower / Contractor · Pittsburgh, PA · Member since 2016 · 60 posts · 29 votes
    10y

    @Dominic Lucarelli yes I am familiar with that area and it is a great location - as far as you b n a rookie well, there is @ least a year and a half b4 anything can happen - possibly 2 years to come up with a solid plan of action. 

    The trick is to be creative in no matter what endeavor you may pursue. I am sure however that there is big money chasing this dream so - the idea is to keep your eyes and ears open - to get in on it, where ever possible.

    The big building I refer to here is already owned by an associate, I guess the ticket here is to secure a lease and then find potential subleases for those who want to grow - like with your situation the area has access to many freeways - Carson Street is being worked on and expanded to bring more commerce to Pittsburgh and the Railroad is expanding to bring a distribution center to this area.

    So the possibilities are endless here. And good luck to you! Like an old saying goes - there's room for everyone and money to be made! Lol!

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