Our primary investment objective is to purchase the physical real estate assets currently owned by top quality operators in the cannabis industry and engage in a sale lease back with such operators. In support of this effort we leverage our own, best in class technology to verify that every property is fully zoning compliant for such use – as it relates to both current and proposed legislation. In select instances we may also participate in funding Tenant Improvements that meet criteria for materially improving the underlying real estate asset value. We do not seek an equity stake in any of these operators, or structure percentage rent based on revenues.
We believe that real estate assets in this industry represent the most stable and risk-balanced vehicle for investment. Since the zoning regulations of the industry are so numerous and varied, the real estate assets in essence represent a scarce resource. Research conducted by HerbFront, Inc. estimates that less than one/tenth of one percent of any commercial property in a given municipality qualifies for use as a cannabis dispensary, manufacturing, or grow facility. We will secure this scarce resource and lock-down valuable long-term relationships with top tenants to produce regular cash flow. Our intention is to target a liquidity event between years three and eight to offer investors an option to cash out or re-invest.
HF Capital launched in early 2016 with the goal of becoming the premier landlord to the fast growing cannabis industry. Our founding partners posses decades of expertise across commercial real estate, cannabis compliance, fund formation and administration, and banking.