What We Do
GreenZone Properties, LLC is creating a development niche in cannabis related real estate. Our team is actively seeking out commercial, industrial, and retail properties as well as raw land to purchase, develop, and then sell or lease out to individuals already firmly ingrained in the cannabis industry. We are looking specifically at properties that can be used for cultivation (growing) and manufacturing (processing), along with dispensaries (retail sales). Separate entities will be created for each such that those investors not comfortable with the retail side of things can still invest in cultivation and/or manufacturing.
Once a potential property is identified, we carefully screen and analyze it for suitability. If we’re considering a cultivation/manufacturing site for example, we want to make sure that the area is properly zoned, that the ground is suitable for cultivation, that there is an adequate supply and source of water and electricity, and that the climate can be properly controlled. We also make a point of speaking with local officials to understand their objectives, assuring that we’re working with the local municipalities and not against them. We meet with architects, engineers, conduct environmental studies, and do on-site inspections
with project managers and contractors.
When considering a potential dispensary, we also examine the local market to assure that consumer demand will be high, that the property is suitably located in an easily accessible, high demand, and visible area such as along a Main Street or directly off a highway. Knowing that we will lease some but not all of the properties we develop, we also carefully screen prospective tenants, examining their experience in the industry, considering their business plans, and verifying their ability to pay. Unfortunately there are many people interested in getting into the cannabis industry with high ambitions, but little to no appreciation for the demands of running such a business.
When we purchase raw land and build from the ground up, we will pre-sell the buildings. This serves two purposes. First it allows our investors to realize a return more quickly. Second, it allows us to customize the
building to the needs and desires of the buyer.
For those properties that are leased, tenants will be asked to sign a five to ten year agreement with triple net lease terms. This normative practice in the industry means that tenants will be responsible for all property taxes, property insurance, and building maintenance. We’ve also identified several other exit strategies including seasoning a quality tenant in a leased building, and then selling it to an investor as a turnkey business, selling a building with owner financing and holding the note, and using owner financing and then selling the note to another investor.
Our focus at GreenZone Properties is exclusively on the real estate that backs the cannabis industry. At no time will the Company actually possess or distribute cannabis or cannabis-based products. We may revisit this policy if/when the Federal government passes legislation approving recreational use on a national level. However, regardless of the stance of the Federal government we own an asset that has the potential to be leased out or sold to businesses in a variety of different industries.