January 11, 2019
Culver City, CA-based MedMen Enterprises Inc. plans to sell $100 million in real estate to Treehouse Real Estate Investment Trust. The newly-formed cannabis REIT vehicle hopes to capitalize on the fast-growing cannabis industry in the U.S., initially via sale-leaseback transactions with MedMen.
Treehouse completed its first round of capital raise at $133 million, and will partially use the funds to purchase properties from MedMen. That may include retail stores, as well as cultivation and production facilities.
MedMen intends to use the proceeds from the prospective transactions to assist in funding the buildout of its national footprint, that includes 76 retail licenses and 16 cultivation and manufacturing licenses in 12 states.
Treehouse has a management contract with MedMen to oversee day-to-day operations until Treehouse goes public, when management will be internalized. Treehouse is a collaboration between MedMen and Stable Road Capital, a Venice, CA-based investment firm.
You can hear more about the trends shaping the retail industry at Connect Retail West coming up on Jan. 22nd at The Resort at Pelican Hill. Here’s where to get more information and register to join us.
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