A build-to-suit (or design-build) lease is essentially Fusion Properties agreement to construct a special purpose built building, usually for a single tenant. Fusion will own the land (and once constructed, the building) and has the option of re-letting the building to the existing tenant or a new tenant upon the expiry of the term of the build-to-suit lease to the original tenant. Build-to-suit leases typically are for a longer term than a normal lease in order to permit the landlord to recoup its investment over the duration of the lease term, thereby reducing the overall monthly lease rate to the tenant.
A build-to-suit arrangement is essentially comprised of two agreements: (i) a development or construction agreement, which defines the relationship between Fusion and tenant from the design through to the construction of the building; and (ii) a lease agreement, which stipulates the terms of the occupancy post-construction. In some cases, the provisions regarding the construction of the building are included in the lease itself or captured in an accompanying “work letter”. The construction aspect of this arrangement is usually the key issue and the most complicated, warranting close attention to each parties responsibilities in this regard.
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Development, construction, and leasing of special-purpose buildings is our business. With more than 30 years in commercial real estate, management of Fusion Properties has extensive experience and expertise in the business — and in developing various real estate options for our clients.
THE LEASING ADVANTAGE
Build-To-Suit For Lease affords clients all the benefits of their own, customized space without the commitment and responsibilities of ownership.
- Preserves capital: Reinvest your capital into your business versus into an illiquid real estate investment.
- Flexibility: Creative and customized lease structures with terms set to meet the clients’ business goals and objectives.
- Tax deductible: Lease payments can be 100% deductible.
- Affords time and ease of disposition: If you sell your business, no need to deal with a real estate transaction, too.
THE NEW CONSTRUCTION ADVANTAGE
New Build-To-Suit For Lease means fresh, new space designed exactly to your specifications. Your unique stamp: Create space that meets your specific needs, space that puts your best foot forward for your clients and employees. Custom finish selections: Create your own identity and brand with a new space designed to make a positive and lasting impression on those with whom you do business. Lease what you need: Space that fits your current and future business needs—no more, no less. Current and compliant: Maximize operational efficiencies and productivity—new construction brings ADA compliance, modern and efficient energy and roofing systems that result in lower operating costs and a lowered risk of property damage or operational disruption.
Location, location, location: With Fusion’s municipality contacts we can help you select a site that maximizes your business needs. New construction allows clients to locate in areas vibrant with growth and activity, with great access and up-to-date infrastructure.
ENGINEERING
Engineering a grow facility requires an uncanny attention to detail and Fusion Properties knows construction and energy engineering. Fusion knows the electrical, mechanical and spacial requirements for a successful grow house and how to insure an environment to produce higher yields per crop. With over 40 years of engineering and construction experience, Fusion is equipped to handle any size grow facility from 1,000 square feet to 1,000,000 square feet. We can audit the existing utilities to ensure enough energy and water is available to meet the needs of the marijuana crop.
Fusion also knows many different growing techniques so depending on the yields and type of marijuana you want to grow, we can suggest a hydroponic grow, aquaponic grow, potted grow, outdoor grow with many more to choose from.
ENERGY
Fusion employs subject-matter-experts in each of their respective fields to achieve the highest energy output and lowest cost possible. Fusion also has an extensive knowledge of the lights available on the market so we can easily recommend one light over another based on our clients experience with each. The energy to run each light efficiently is different as well so Fusion will assist with lighting. Fusion can also explore renewable sources of energy to power your marijuana grow facility such as solar energy.
INDOOR BUILD
Indoor marijuana grow facilities are the most common. They are fairly easy to construct, they work in virtually any climate and can be almost any size. They do, however require a lot of energy but that may be the only option depending on where you live. Fusion has extensive knowledge of the necessary power, space, security, agricultural and staffing for indoor grow facilities. Fusion can best provide an estimate once a yield amount is set. Fusion can work backwards from how much money you want to make a month or how many pounds of marijuana you want to grow and sell each month. The cannabis industry is similar to any other business and with a planned and calculated approach, you can achieve great things with Fusion.
OUTDOOR BUILD
Outdoor builds are a little more challenging than indoor builds and depends entirely on the climate you live in. The marijuana plant is a weed and can grow fairly well in a variety of climates but as the art of growing marijuana advances, new techniques arise and prove their worth daily. Aside from the sun being the source for growth, outdoor grow facilities have two build types. Open air build and a greenhouse build. Both have their advantages and disadvantages.
Outdoor Builds
The open air builds rely on the sun to grow the plants but can be subject to poor weather which could destroy a crop like hail, wind, flooding and more. This makes an outdoor crop vulnerable to mother nature and adds risk to your investment. It may be more of a risk but there are far less on-going expenses such as electricity and heating.
Greenhouse Builds
Greenhouse builds may require heating and humidifying the greenhouse but can still rely on the sun to grow the plants. The greenhouse does have one clear advantage though but let’s first establish the purpose of a greenhouse. They’re intended to be a consistent and constant growing environment. Because greenhouses have ideal growing conditions, the plants continue to grow as long as the environment doesn’t experience any drastic temperature changes similar to that of the changes of seasons on earth.
SECURITY
Whether you’re build and outdoor or indoor facility, security is a must. As the cannabis business grows, the more crooks will try to exploit it. The need for a secure grow and retail facility are equally important just like any business. Fusion is partnered with an industry leader in security systems, Quantum Security. They can consult with you on creating the optimal security solution which is customized to your business needs. Quantum Security can design and deploy an advanced security system to protect your investment from theft, fire and even consult you on staffing for the best security system possible. From surveillance cameras to motion sensors and armed-guard tactical response, Quantum has the tools to protect any facility.
REAL ESTATE
We acquire, develop, lease and manage properties that have been approved by state and local authorities for the specific use of growing medical cannabis.
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From site selection to financing, to delivery of the finished project, Fusion’s sale/leaseback or build-to-suit approach results in a facility that meets the long-term needs of our tenants. Our team works together to translate your business needs into facility needs. To speak with FUSION PROPERTIES about your specific situation, please contact:
Kendell Lang
CEO & Principal Investor
FUSION PROPERTIES, Inc.
1155 Camino del Mar, Suite 521
Del Mar, CA 92014
(m) 760.445.3315
Go To https://calendly.com/kendell-lang in order to schedule a discovery call.
