- Building owner to finance part of the purchase price
- 50,000 sq. ft. will have a mezzanine built and rented at $5-7 sq. ft.
- A percentage of each grow will be collected
- Cultivation tenant has been acquired
COCONUT CREEK, Fla., June 26, 2018 (GLOBE NEWSWIRE) — Via OTC PR Wire — Bahamas Development Corporation (OTCPINK:BDCI) subsidiary company Global Consortium, Inc. dba Cannabis Consortium Partners have reached a deal with the building owner to purchase the entire 64,000 sq. ft. building in Northern California for $9 million.
The building owner has agreed to hold an interest only note for $4.5 million with a 60-day balloon payment once the current tenant is successfully removed from the space or their lease expires. Based on the amount of rental space available, the ROI for the building purchase is 15 months after rentals begin.
The purchase of the entire building ensures that Cannabis Consortium and its partners have full control of the building and all the valuable licenses that go with the building. The submission of the condo approval from the state is expected shortly as the building was already preapproved.
The purpose of the building is to mezzanine 50,000 sq. ft. to increase rentable square footage to 100,000 sq. ft. with 10′-12′ ceilings. The space can be then leased in 2,000 sq. ft. parcels at $5-$7 sq. ft. per month plus a percentage of each grow. The space should generate approximately $600,000 per month in rent plus the backend payments from each grow.
The remaining 14,000 sq. ft. will be utilized for the manufacturing of THC, CBD and infusing of various items under the edible brands owned by Cannabis Consortium and its partners. This area can also have a mezzanine built if additional space is needed.
Cannabis Consortium and it partners acquired the cultivation company that was going to occupy 20,000 sq. ft. of the building. The previous owner will become an employee and operate the cultivation space.
With the purchase of the building and the various licenses combined with the cultivation acquisition, Cannabis Consortium and its partners have now become a fully integrated operation. The Group now will control everything from the seed to manufacturing and distribution of its products under one roof.
Possession of the building under the lease is expected to take place the first week of July. The business license has been ordered. Upon receipt of the business license, production and sales can begin.
This building is one of the assets to be bundled together and sold to Global Consortium.
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