STREAM Closes a Sale and Leaseback of a Cannabis Cultivation and Dispensary

July 27, 2018

STREAM Capital Partners has executed a sale-leaseback transaction for a multi-use cannabis facility in Denver, Colorado.

The state-of-the-art 54,000 square foot facility contained grow and cultivation capabilities, as well as a 1,300 square foot adult use and medical marijuana retail dispensary. The proceeds of the sale-leaseback were used to purchase majority interest in an established cannabis brand by an investment group seeking to diversify their current business holdings.

STREAM achieved competitive pricing and terms on behalf of its client by sourcing multiple offers during a very condensed, off-market process. Adam English, Adam Baxter, Jordan Shtulman, and Jonathan Wolfe of STREAM Capital Partners represented the seller on the transaction.

“We see the potential for sale-leasebacks to have a tremendous impact on how mergers and acquisitions transactions are structured in the marijuana industry,” commented English.

Baxter continued, “With no access to traditional debt and while equity capital remains expensive, real estate sale leaseback financing provides cannabis cultivators and retailers with the lowest cost of capital to finance their real estate needs without diluting their equity ownership.”

To learn more about this transaction and to evaluate sale-leaseback financing for your company, please contact Adam English and Adam Baxter.