CEAF Build to suit lease-back

What is a CEAF Build to Suit Lease?

 

Our build-to-suit (or design-build) CEAF lease is essentially a landlord/developer's agreement to construct a purpose built building, for our Cannabis Cultivator tenant.   

This approach also offers tenants the opportunity to:

 · Assist in developing a building that suits their very specific requirements

 · Allows our Cannabis tenant to occupy a new building, designed and constructed to the Cannabis Industry specifications with limited capital outlay  

Leasing Benefits

  • Flexibility: Creative and customized lease structures with terms set to meet the tenant's business goals and objectives
  • Customization: Lease space without the commitment and responsibilities of ownership
  • Retain capital: Ability to reinvest in the business operations instead of the large capital outlay required to own the cultivation facility and the real estate 
  • Tax deductible: Lease payments may be 100% deductible

New Construction Benefits

  • Space designed exactly to the needs and specification of your cannabis business
  • Provides the ability to maximize operational efficiencies, productivity and compliance  for the complexity of the cannabis industry


Transaction Structure

CEAF'S acquisition criteria is focused on Build-To-Suit properties with the following attributes: 

  • Net Lease Agreements and Criteria: Leases are structured as triple-net leases; in addition to paying monthly rent, the tenant is responsible for the property’s operating expenses such as taxes, maintenance, insurance and structural repairs. 
  • Tenant Requirements:  We seek tenants that have gone through the rigorous state licensing process for medical and/or recreational cannabis and have been granted a license to grow medical and /or recreational cannabis. 
  • Tenant Improvements:  CEAF is  unique in that it's transactions can include virtually all of the fixed equipment usually purchased or financed by a cultivator.  CEAF is not only going to own the real estate and lease that back to the cultivator, we blend into the lease all the irrigation systems, lighting systems, security systems, solar power, water recycling, grow tables, A/C, chillers, environmental control, etc. 
  • Lease Term: Minimum 10-year lease terms years or longer including most of the affixed equipment (Air-conditioning systems, Lighting systems, Grow systems, Irrigation systems, etc.). 
  • Property Type:  Tenant provides property locations to be considered within local municipalities that have been legally approved for Cannabis use.