Many Californian cannabis companies are in need of quick cash to sustain or grow their businesses, and as funding in traditional realms is drying up, real estate deals are fast becoming solid options.
Selling cultivation land, storage or processing facilities, even retail storefronts, to marijuana-focused real estate investment trusts (REITs) is providing many business owners with cash upfront. Those cannabis companies then sign long-term leases with their new landlords. And by doing so, business owners become tenants withing the properties that once belonged to them.
In recent months, a slew of cannabis companies have taken advantage of sale-leaseback deals, including: Cresco Labs, Columbia Care, Green Thumb Industries, Acreage Holdings, and Grassroots Cannabis, to name a few. Together, sales from these multi-state companies brought in well over $200 million when selling properties then leasing those back from the new owners.