DURANGO, CO — According to iBrands Corporation, Inc. (“the Company”), a diversified holdings company, legal cannabis sales topped $1 billion in Colorado last year. From 2009 to 2014, 36 percent of new industrial tenants were marijuana businesses there and nearly four million square feet of industrial space in Denver was being used for cultivation in 2015, about 3 percentof the city’s warehouse space. Warehouse vacancy rates in Denver fell to just 3.7 percent in 2015, down from 7.5 percent in 2010.
iBrands Corporation recently announced that it has acquired Durango Warehouse LLC., holder of 38 acres of arable land in Ignacio, Colorado. The property is located about one mile from the Durango-La Plata Airport.
With this acquisition the Company has garnered its second leasing location consisting of more than 20 acres of land zoned for cannabis cultivation, representing another leasing opportunity following the mini-storage business concept of subsidiary, Cherubim Interests Inc. (CHIT).
“This is great for the company because we have proven our single tenant or “big box concept” and also compliments the multi-tenant or co-op business model of our Lowell, Oregon property,” states CEO Patrick Johnson.
The Company will construct a cannabis grow facility that features 10,000 square feet of bloom space, along with an additional 5,000 square feet of additional required space for vegetation, processing, etc. The conceptual drawings to the shovel-ready project may be found (HERE). Additionally, the company has entered into a long-term, 30-year lease with a tenant on the constructed facility on the Ignacio property at a monthly rental rate of slightly over $11,000 USD per month.
“We will continue to acquire properties and deploy technology like this where there is a substantial rental revenue-generating opportunity and that brings real value to our shareholders,” stated Johnson.
Mini-Storage Business Model
Cherubim’s business model is similar to that of mini-storage companies by leasing secured square footage to individuals and corporations who need it. The company however has a hybrid format in which it will be offering both single tenant or “macro solutions” as well as the traditional multi-tenant or “micro solutions” as its platform.
Multi-Tenant (Co-Op) Concept
The multi-tenant concept allows for multiple tenants to rent individual, self-contained BudCube Cultivation Systems (BCS) cultivation units at a secure location staffed with management, maintenance, and security personnel.
Single Tenant (Big Box) Concept
The single-tenant concept allows for an entity to enter into a long-term lease agreement with an option to purchase the facility (plus land if applicable) at the end of the lease term for a sales price determined considering fair market value. This is a much larger square footage concept with construction techniques and materials determined on a case by case basis. (Image Here)
