Bangi, a diversified investment vehicle that acquires and leases specialized real estate assets, such as cannabis farms, has announced that it has signed a letter of agreement to acquire a 38,000 square foot property permitted to grow medical-use cannabis in Michigan.
"The purchase price for the property will be $3 million including transaction and renovation expenses. Bangi will lease the property to the original owner upon completion of the acquisition, with the intent to utilize the property for the cultivation of medical-use cannabis as a licensed Michigan medical caregiver. Additionally, the Company and the former property owner will form a strategic partnership designed to acquire additional cannabis real estate assets in Michigan under the terms of the agreement," the company explains.
"The Michigan property currently generates $700,000 in triple-net lease income with the potential to increase its income by an additional $50,000 per month, upon completion of the state's licensing requirements."
Michigan became the thirteenth state to legalize medical-use cannabis in 2008. According to data reports, the state estimated it had more than 260,000 medical cannabis patients in 2018, the fifteenth largest number of medical cannabis patients, and one of the largest numbers of medical cannabis patients per 1,000 state residents, in America.