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YOUR TRUSTED
PARTNER IN
CANNABIS
REAL ESTATE
what we do
Good seed capital is a cannabis real estate
investment and advisory firM
WE focus on the debt financing and acquisition of industrial and retail properties in the regulated u.s. cannabis industry
investment and advisory firM
WE focus on the debt financing and acquisition of industrial and retail properties in the regulated u.s. cannabis industry
FOR Cannabis operators
Growth Capital
Middle-market players, even with proven experience, have been widely underserved compared to larger operators.
Flexible Structuring
Sale-leasebacks to unlock corporate equity tied up in real estate, term mortgage debt to reduce refinance risk, or rehabilitation debt to finance property build-out.
FOR Investors
Non-Correlated Assets
Cannabis has proven to be an inelastic, recession-resilient good, unaffected by stock market volatility.
Inflation Hedge
Our investments are structured to mitigate potential persistent inflation by utilizing floating-rate mortgages and annual rent escalators tied to inflation measures.
CANNABIS REAL ESTATE OPPORTUNITY
Capital Markets Dislocation
The lack of federal regulation has led most institutional capital to avoid the cannabis industry; the result is inefficient and fragmented capital markets that lack liquidity.
The lack of federal regulation has led most institutional capital to avoid the cannabis industry; the result is inefficient and fragmented capital markets that lack liquidity.
Mispriced Credit
Mortgage and capitalization rates (traditional measures of real estate investment return) for cannabis-use properties can be ~2x that of non-cannabis industrial and retail properties.
Mortgage and capitalization rates (traditional measures of real estate investment return) for cannabis-use properties can be ~2x that of non-cannabis industrial and retail properties.
Staying Power
Medical cannabis is legal in 37 U.S. states, adult-use in 19 states, while U.S. legal cannabis spending was $24B in 2020 and is on track for $46B by 2026, representing a 14.2% CAGR1.
Medical cannabis is legal in 37 U.S. states, adult-use in 19 states, while U.S. legal cannabis spending was $24B in 2020 and is on track for $46B by 2026, representing a 14.2% CAGR1.
Collateralized Upside
Cannabis real estate offers investors upside exposure to the cannabis industry while maintaining the downside protection of collateralization; e.g. real estate, cannabis license, and operating equipment.
Cannabis real estate offers investors upside exposure to the cannabis industry while maintaining the downside protection of collateralization; e.g. real estate, cannabis license, and operating equipment.
GOOD SEED'S EDGE
The Good Seed team combines decades of experience across real estate, legal cannabis, and capital markets to conduct multi-disciplinary due-diligence resulting in superior risk-adjusted returns.
Good Seed is targeting the overlooked middle-market cannabis segment as tenants of our industrial or retail investment properties.
Good Seed capitalizes on a traditionally overlooked section of the market, allowing for more advantageous transaction terms, especially to layer corporate equity kickers in to traditional real estate debt or equity structures.
DUNCAN MENDELSOHN
Managing Principal
Over 14 years of experience in commercial real estate and gov’t-regulated financing.
Established the credit department at one of the largest gov’t-insured lenders; grew the credit team that he oversaw to 25 people and loan pipeline to $1B+ per annum. Personally underwritten $1.5B+ commercial real estate loans.
CHUCK
SMITH
Principal
Over 14 years of experience in legal cannabis, over 35 years in a variety of industries.
Co-Founder of Dixie Brands, one of the nation’s most recognizable cannabis brands; grew it into a six-state, 100+ product, publicly-traded company. Founder of a still operating real estate development company. Previously, served as CFO for a retail apparel chain.
JOSH
HANFLING
Advisor
Over 27 years of experience in public affairs and philanthropy.
Played an instrumental role in the development of Colorado’s legal cannabis program. Co-Founder of Sewald Hanfling Public Affairs; has worked with stakeholders in dozens of industries, including real estate, technology, private equity and financial services.
CASE STUDY:
A CREATIVE CAPITAL SOLUTION
While securing additional warehouse space in San Francisco, California to expand its operations, WOVN, a cannabis distributor and software provider, was introduced to Good Seed as a potential capital provider. During the underwriting process, Good Seed converted the proposed structure from equity to debt, then brought in a partner debt provider, thereby creating a capital structure that met the needs of all transaction participants and resulted in a successful closing and a satisfied cannabis operator.
"It's difficult to find financing as a small business in any industry and ours presents unique challenges. Luckily, we connected with Good Seed and were able to structure a deal that worked for our business's near term needs and future growth."
- JJ Hanley, CEO / Co-Founder