Rittertime is working closely with a multi-state operator to purchase an industrial cannabis facility in Salem, OR. The operator has already secured a debt lender and is looking for an equity partner to complete the real estate transaction. The party purchasing the property also owns the tenant entity and has leased the facility for the last 5 years. The cannabis business they are operating is one of several which they manage across the western US.
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HIGHLIGHTS
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- Tenant is a MSO and owners of that tenant are under contract to purchase the real estate, so no risk of tenant leaving.
- Site is currently platted as 1 lot, but they have spent the last 2 years subdividing the site into 4 lots. Subdivision will be executed post-closing and additional lots will be sold off to local developers generating $800K-$1MM within the first 2 years.
- Project cash flows day 1 to cover preferred return on investment.
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OPTIONS TO INVEST
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OPTION 1: MEZZANINE LOAN
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$400K < 10% with warrant for equity at an agreed upon share
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OPTION 2: EQUITY INVESTMENT
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$1.2MM equity contribution for negotiable share % of Real Estate
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