Pricey Property

One thing that no one can deny about the end of cannabis prohibition in Washington State, is that it has been good for the economy. New, decent paying jobs, millions of tax dollars being generated, and now, a cannabis real estate boom? Commercial real estate continues to be a big area of growth.

In late June Pacific Century Holdings (PCH), a real estate firm for I-502 cannabis operators and investors, announced the launch of a real estate investment fund that is worth $50 million. The fund, which is called the PCH Fund 1, is described as “an investment vehicle capitalizing upon the scarcity of real estate assets for the cannabis industry.”

“We developed a fund strategy that allows investors to take full advantage of the current exponential growth in the cannabis industry, and enables operators to build and develop successful businesses.”

The experts at PCH are responding to a large obstacle that often stands in the way of even the most experienced cannabis entrepreneurs—finding the right real estate. The fund will aim to buy up agricultural, industrial and retail properties that are good candidates for cannabis businesses. A team of experts will oversee the fund to maximize the profits for investors. The firm’s CEO, Tony Repanich, and Chief Business Development Officer Justin Braune, will lead the team.

Repanich’s financial expertise is vast, with a 22-year tenure at Bellingham-based People’s Bank. In a statement following the announcement of the fund, Repanich explained the benefits of the fund for both investors and cannabis business operators.

“We developed a fund strategy that allows investors to take full advantage of the current exponential growth in the cannabis industry, and enables operators to build and develop successful businesses,” said Repanich. “We believe this two-fold approach provides a good platform for outperforming traditional real estate returns. We have assembled a team of industry experts to make prudent capital allocations and manage assets within this complex and rapidly evolving market.”

This exciting announcement comes after Uncle Ike’s and Main Street Marijuana announced they were selling all of their retail stores and properties. Their announcement to sell came on the heels of a bill being introduced into senate that allowed for out-of-state investment in cannabis businesses. As of the time of writing this bipartisan bill is in its third Special Session and has retained its present status.

Should out-of-state investors be allowed in Washington State’s cannabis industry, this would have huge implications, particularly for real estate investment firms like PCH. Whether or not investment stays in-state, if the cannabis industry continues to grow as it is now, you can count on real estate being a huge need for established cannabis producers, processors and retailers. Hopefully when that time comes, PCH will be there to help fill that need, helping cannabis businesses thrive and grow.