(This story has been corrected to note that the properties are being sold but not the stores.)
MedMen Enterprises said it agreed to sell three cannabis properties in California and Nevada for roughly $12.5 million, a move aimed at boosting the multistate marijuana company’s liquidity and supporting its expansion.
Los Angeles-based MedMen said in a news release the three properties are being sold to the newly formed Treehouse Real Estate Investment Trust. MedMen also said it plans to sell additional real estate assets to Treehouse over the next 12 months.
The properties will be leased back to MedMen or its subsidiaries at market rates under long-term leases.
The transaction includes the real estate at these locations:
- MedMen Abbot Kinney, a store in Venice, California.
- MedMen Beverly Hills, a store in Los Angeles.
- MedMen Downtown Las Vegas, the company’s first branded store in Las Vegas.
Here are some other details of the transaction:
- The $12.5 million in proceeds is calculated after the repayment of debt.
- Treehouse is a real estate investment vehicle that aims to capitalize on the cannabis industry’s growth.
- Initial investors in Treehouse include the real estate firms New England Development and Samuels & Associates, both based in Boston, and Ohio-based Visconsi Companies, in partnership with Stable Road Capital of California.
“Given the investor interest in the sector, this vehicle made a lot of sense,” Brian Kabot, chief investment officer of Stable Road, said in a statement.
“More importantly, this creates liquidity and creates an efficient form of off-balance sheet financing to foster further growth for MedMen … .”