Medical marijuana is a burgeoning market with incredible potential for businesses that want to get involved as growers, manufacturers and distributors. However, the industry is more riddled with challenges and obstacles than an Iron Man competition so working with a company like Fusion Properties Management Group can mean the difference between succumbing and success.
Fortunately, in a recent interview, Sean Spicer, White House Press Secretary calms concerns about the position of the Trump administration saying, "There’s two distinct issues here: medical marijuana and recreational marijuana. I think medical marijuana, I said before, the President understands the pain and suffering that many people go through who are facing especially terminal diseases and the comfort that some of these drugs, including medical marijuana, can bring to them.”
This is clear and hopeful confirmation that the medical marijuana momentum will likely continue especially with solutions like the one Fusion Properties Management Group provides.
Fusion Properties, of which California real estate professional Kendell Lang is the owner and CEO, is a real estate management vehicle fueled by a Real Estate Investment Trust (REIT) that exclusively serves the state-licensed and city-permitted MMJ growing community. Let’s take a look at what this company does and how it benefits medical marijuana cultivators and manufacturers…
Real Estate Transactions
First on Fusion Properties’ agenda is the acquisition of a nationwide portfolio of single purpose real estate, all freestanding properties, which are used for the controlled environment agriculture (CEA) of medical cannabis. This offers growers the obvious service of being able to find properties in their preferred locale that have already been approved for the purpose of medical marijuana cultivation.
Then there are the sale/leaseback opportunities offered by Fusion Properties and it’s here that we need to understand a key industry challenge in order to appreciate the benefit of the service…
“Marijuana is a Schedule 1 substance, which makes it illegal at the federal level,” explains real estate professional, Kendell Lang. “Since all U.S. banks and credit unions are required to operate strictly within the confines of federal law, few are willing to service businesses involved in the cultivation or distribution of marijuana, even legalized medical marijuana.”
What this means, amongst a smorgasbord of prohibitive ramifications, is that MMJ growers are denied access to capital.
“Then there’s the fact that grow operations are enormously expensive to operate requiring complex security and irrigation systems, expensive equipment, a lot of staff hours and power. The only businesses that are going to survive are those that can secure a lot of necessary capital. Without cooperation from the banks, more grow operations are going belly-up than those that can afford to stay afloat,” explains Kendell Lang.
The solution Fusion Properties offers comes in the form of sale/leaseback opportunities.
“Our acquisition strategy is to act as a source of capital to these licensed medical cannabis growers by acquiring and leasing back their real estate facilities,” says Kendell Lang. “By selling the property and building to Fusion Properties, and then leasing it back from us, growers are able to redeploy the proceeds into their company’s core operation and yield a higher return than they would otherwise get by owning their own real estate.”
This makes perfect sense. After all, medical marijuana growers make their money from growing, harvesting and selling quality product, not from real estate, and so their capital is better invested in the operation, upgrade and expansion of their farms, equipment and structures.
Other opportunities extended by Fusion Properties’ services are build-to-suit, turnkey facilities, which can either be built from the ground up or are offered as upgrades to existing buildings.
“We design and build fully customized, build-to-suit CEA facilities for users with the desire for a single-tenant, customized environment,” explains real estate expert Kendell Lang. “Furthermore, we’re unique in that our real estate transactions can be tailored to include virtually all of the fixed equipment normally purchased by a grower. It’s our mission to provide or purchase freestanding licensed medical cannabis growing facilities with the technology and infrastructure needed for growing the highest quality licensed medical cannabis.”
Fusion Properties offers a path forward for more medical marijuana cultivators and manufacturers, lending a much-needed helping hand to an emerging industry.
Contact Real Estate Expert Kendell Lang
If you are a state-licensed medical marijuana cultivator or manufacturer and would like to learn more about Fusion Properties’ real estate and construction services, contact real estate expert Kendell Lang at +1 760 445 3315 or go to https://calendly.com/kendell-lang to schedule a discovery call.
CEO & Principal Investor
FUSION PROPERTIES MANAGEMENT GROUP, INC.
Oriental Center, Suite P1 | 254 Munoz Rivera Avenue | San Juan | Puerto Rico | 00918
Phone: +1 760 445 3315