Zoned Properties CEO: Exclusive on the latest developments in cannabis real estate

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Brian McLaren, Chairman and CEO, Zoned Properties (OTCQB:ZDPY), talked about the latest real estate news at Benzinga Cannabis Capital Conference on Thursday.

As an expert in urban planning and zoning, McLaren entered the cannabis industry as a real estate investor and apparently never looked back.

His company, Zoned Properties, based in Scottsdale, Arizona, is a strategic real estate development firm with a core mission to provide real estate and sustainability services to the regulated cannabis industry.

With a core investor base that financed the initial investment, the company acquired and developed a portfolio of properties.

Chino Valley Expansion Project

Today, Zoned Properties is “completing a rather exciting expansion with our primary tenant” at its Chino Valley, Arizona facility, which will have “a meaningful and significant impact on our business,” McLaren said.

The over $ 8 million project is nearing completion and is expected to more than double the size of the current facility in operation.

Upon completion of the expansion, rental income for the property is expected to grow from $ 393,600 to $ 957,550, representing an annual increase of $ 560,000 or 4.6 cents per common share.

Revealing voids

“There are actually two forks when it comes to big real estate companies,” McLaren said.

There is an “investment finance pathway” with real estate trusts providing financing to cannabis businesses and there is a real estate and service development route.

“We are deliberately not a REIT,” he stressed, adding that they are on “route two”.

Zoned Properties supports cannabis operators covering everything from real estate searches to navigation, zoning and local permitting.

Despite the bureaucratic headache described above, legalization is one of the most problematic

McLaren lamented that cannabis businesses face obstacles these days.

“Changes to the rules are happening on a whim at the state and local levels, and it seeps down and hesitates to affect real estate.”

However, the company insists on developing solutions for the cannabis business.

“Looking at where the ice hockey puck is going, not where the pocket is,” is how the company evolved into what it is today, he said. “Everyone stumbled upon real estate,” raising capital to start a business.

He admitted that the road was rough. From identifying “gaps in the brokerage market” that didn’t work with cannabis to figuring out how to “engage with local communities”.

Zoneomics Partnership

In an effort to soften the unevenness, Zoned Properties partnered with Zoneomics and its CEO Matthew Player, who is an expert in urban planning and zoning. Both companies combine McLaren’s real estate and property expertise with the successful zoning platform Zoneomics to ultimately help cannabis and other regulated industries.

“We’re going to provide the partnership with just under $ 100,000 in investment capital, and Matthew and his teammates at Zoneomics are going to take everything on their platform, all their proprietary software and data, and put it all into a cannabis solution,” McLaren said. adding that the partnership is a “huge opportunity”.

He noted that they are ready to create a nationwide platform for brokers, land use attorneys, appraisers, developers, as well as cannabis companies.

Open Dør partnership

December zoned announced the launch about another partnership with the retail dispensary franchisor The Open Dør.

Founded by international franchisor Katherine Blackwell and cannabis compliance expert Chelsea Mulligan, Open Dør has come a long way since its inception in 2020 with a team that together boast over 30 years of experience in the franchising industry.

One of their main goals now is to help cannabis licensees enter the market faster and more efficiently by simplifying the process.

Earlier this year, Zoned provided Open Dør with an additional $ 100,000 investment to implement data projects that use zoning and geographic information systems.

By overlapping various data, the company aims to “provide an efficient and effective way for property owners and cannabis operators to find out where these types of green spaces are,” McLaren recently said. said Benzing.

“We will be in a position to help them raise some initial private equity,” McLaren said.

Once The Open Dør completes its first round of private investment, Zoned Properties will be able to convert its investment into a potential 33% stake.

“Given the progress, we have a good chance of considering converting this capital, but we will also be able to become a real estate unit,” concluded McLaren.

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