Ahead of a medical marijuana ballot measure, an Arizona-based real estate company is investing in industrial space in Sarasota, which could provide the groundwork for the distribution and production of medicinal marijuana in Florida, if the measure passes in November.
Cannabis Rx announced it acquired a 209,000 square foot commercial space in Sarasota.
Llorn Kylo, Cannabis Rx’s CEO, said his company is “first and foremost… a real estate company” and found the city was a great place to invest.
“We did a lot of homework on Sarasota and they are offering a lot of really good incentives to companies to come there and set up their businesses,” he said. “The building prices there are quite reasonable and the economics on this building but some of the other buildings just make a lot of sense.”
Kylo’s company buys commercial real estate properties and then leases them to licensed marijuana growers and distributors. That’s what Cannabis Rx plans to do in Florida. However, their recent Sarasota acquisition comes months before Floridians will vote on whether the state will actually legalize medical marijuana.
Because the company’s number one interest is making good real estate investments, Kylo said he thinks the company can turn a profit whether or not Florida’s medical marijuana ballot measure passes this fall.
But if it does pass, Kylo said his company can provide the space and capital to get this new industry up and running in the state.
“We think this is a pretty neat and compelling opportunity with the discrepancies in the federal and state laws,” he said. “You know, these operators need banking or money or capital and they need real estate and we are hoping to provide that to them.”
Cannabis Rx has real estate in five other states including Illinois and Washington—where marijuana is legal for medical and/or recreational use.
Kylo said other states like Colorado have a lot of competition, which is driving up prices, making Sarasota a more attractive investment.
