Scott Allen, Senior Managing Director of Tower Commercial Real Estate, and Rob Foster, Senior Director, lead the new cannabis division.
MIAMI – Due to local cannabis-related retail and industrial operations in Florida, locally-based trading brokerage firm Tower Commercial Real Estate has created a new cannabis division within its tenant agency platform.
Tower CRE said the launch of the new division was prompted by the closing of retail and industrial transactions related to cannabis worth $ 50 million in the past 18 months. Another $ 15 million is in the pipeline, which is expected to be completed by the end of this year.
The new cannabis division, led by Scott Allen, Senior Managing Director of Tower CRE, and Rob Foster, Senior Director, handles all issues related to the cannabis real estate sector and navigates the many barriers to entry in the cannabis sector, including a strict maturity. Due diligence process; thorough understanding of zone codes; local regulations, restrictions and processes; Competitive landscape; Market knowledge; legal review; and funding challenges.
While this is being questioned, the state of Florida requires that cannabis companies be vertically integrated. Therefore, a company must be the cultivator, processor, and delivery point, according to Tower CE officials.
The company provides solutions for retail stores, industrial distribution centers and cultivation centers, including agricultural land, greenhouses and industrial areas. The Tower CRE cannabis division works with specialist lawyers and project management teams to guide each requirement through their development process.
In the past 18 months, Tower CRE has successfully completed transactions for 35 pharmacies across Florida. These include eight Liberty Health Sciences pharmacies, 14 Verano Holdings pharmacies and 13 3 Boys Farms pharmacies.
Tower CRE has 12 other pharmacies across Florida and has established itself as the leading third-party real estate team for the cannabis sector within the state.
“Working with cannabis companies requires a different level of service, attention and a lot of time,” says Foster. “By experiencing the pitfalls early in our tenure, we were able to create and implement a process that is efficient and effective. We have a full team that navigates every requirement from childhood to moving in. "
He adds, "The number of transactions we have completed so far has allowed us to come up with an accurate formula to discover new opportunities and we have had tremendous successes that have resulted in rapid expansion efforts for our customers. "
Allen and Foster state that Florida has one of the best demographic scenarios for cannabis deals as Florida has one of the fastest growing medical marijuana programs in the nation. As of May 2, more than 213,000 people are enrolled, with more than 10,000 registering each month.
Florida also has a large senior population, which is a primary focus of license holders. Additionally, Florida not only requires a cannabis company to be a full industry, but a license allows them to open pharmacies across the state, which is very different from any other state.
"With so many factors on our side, we anticipate continued exponential growth. Given our remarkable achievements and upcoming activities, we felt it was right to officially open this business," says Allen.