MEDMEN REAL ESTATE ASSETS SEED NEW INVESTMENT VEHICLE
Medmen Enterprises Inc. has reached agreement to
sell a significant portion of its real estate assets to the newly formed
Treehouse Real Estate Investment Trust. Treehouse is a
real estate investment vehicle that capitalizes on the cannabis
industry's continued growth; initial investors include real estate firms
New England Development, Samuels & Associates and Visconsi Companies, in
partnership with Stable Road Capital.
The initial transaction includes three properties and is expected to
generate approximately $12.5-million of proceeds to the company after
repayment of debt. Additional real estate assets in Medmen's portfolio
are expected to be sold to Treehouse over the next 12 months. The
properties sold to Treehouse will be leased backed to Medmen or its
subsidiaries at market rates under long-term leases.
"Medmen owns and controls some of the best real estate in today's
burgeoning cannabis industry and they will serve as an important seed
portfolio for Treehouse," said Brian Kabot, chief investment officer of
Stable Road. "Given the investor interest in the sector, this vehicle
made a lot of sense. More importantly, this creates liquidity and
creates an efficient form of off-balance-sheet financing to foster
further growth for Medmen and others in the industry who wish to grow."
"Thoughtful property owners across the country have begun to consider
the role that cannabis retailers play in their overall leasing strategy,
putting Treehouse at the vanguard of an emerging business opportunity,"
commented Scott Baker of New England Development. "Many cannabis
operators own prime parcels in highly sought after communities, offering
a variety of opportunities for return on investment and future
The three initial properties included in the transaction are:
- Medmen Abbot Kinney -- the only cannabis store in what GQ calls the
"coolest block in America," 1308 -- 1312 Abbot Kinney Blvd., Venice,
Medmen Beverly Hills -- the store in a bustling shopping district
adjacent to the city of Beverly Hills, 106 -- 110 S. Robertson Blvd., Los
- Medmen downtown Las Vegas -- the company's first branded store in Las
Vegas in the heart of the city's arts district and near the Fremont
Street Experience, 823 S. 3rd St., Las Vegas, Nev.
About Medmen Enterprises Inc.
Medmen Enterprises is a leading cannabis company in the United States with assets and operations across the country. Based in Los Angeles, Medmen brings expertise and capital to the cannabis industry and is one of the nation's largest financial supporters of progressive marijuana laws.
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