September 7, 2018

Marijuana Real Estate Business Model is Bringing Operators to California

September 7, 2018
A New Marijuana Real Estate Business Model is Bringing Sophisticated Operators to California

This New Marijuana Real Estate Business Model is Bringing Sophisticated Operators to California

Sacramento-based cannabis real estate development company, Canna-Hub, is turning heads as it eases the transition for cannabis companies to move into the country’s most profitable cannabis market: California.

A solution to oversaturated markets

With a population of about four million, Oregon’s residents cannot support the excess marijuana currently flooding the state. As a result, prices have plummeted and over a million pounds of usable flower remains unsold-three times the amount state residents bought in 2017. California, on the other hand, has a population of almost 40 million – creating a huge demand for regulated, efficacious cannabis products.

While Oregonian prices are sinking, out-of-state cannabis investors and businesses cannot help but turn their attention toward California. The state’s overall cannabis market is expected to reach $6.5 billion by 2020, according to ArcView Market Research.

Wanted: sophisticated operators seeking to enter California

In response to California’s “green rush,” Canna-Hub is changing the future of the cannabis industry. Founder and CEO, Tim McGraw, has over 20 years of real estate experience and successfully founded a mortgage company at just 20 years old. He also pioneered Revolution Enterprises, which quickly became the leading cannabis cultivation and manufacturing company in Illinois. Now, McGraw has combined his experiences to find his sweet-spot niche – real estate for cannabusinesses.

Many businesses are hesitant to move into California, as this means going through the process of licensing in a new state. Canna-Hub is making the transition easier by securing all licenses except outdoor growing and dispensary operations for its cannabis business parks. Tenants are able to move into the business parks and begin operations almost immediately. The company’s tenants also pay close to nothing in government taxes, while other cannabis companies are currently paying a 15% excise tax in addition to state and local taxes.

Cresco labs, a national seed-to-sale cannabis company based in Illinois with operations in six states, recently announced that it has taken the opportunity to expand into California with a lease in Canna-Hub’s Mendota location.

McGraw seeks out low income towns to build in that will benefit greatly from bringing the cannabis industry into the economy. He then works with the local legislatures to pass favorable cannabis laws for his tenants. With two locations, one in Williams, Calif. and the second in Mendota, Calif., cannabusinnesses are turning to Canna-Hub as their gateway into the California market.


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