CURRENT SYNDICATION OPPORTUNITIES
NET-LEASED INDUSTRIAL BUILDING INVESTMENT OPPORTUNITY
NET LEASED REAL ESTATE +
EQUITY WARRANTS OPTION
POST-ACQUISITION: SYNDICATION OFFERING
RISK-MITIGATED THROUGH REAL ESTATE WITH OPPORTUNISTIC UPSIDE
This investment offers the rare opportunity to acquire equity in a closely-held company that may experience a near-term M&A event, while also owning tangible real estate and collecting market rents. By coupling both traditional real estate returns with potential equity upside, this could be an attractive investment opportunity for investors to achieve traditional real estate returns in an emerging sector with significant growth potential, and optionally, access to potential cannabis company equity upside.
DEAL HIGHLIGHTS
CLOSED
December 2022
IN-PLACE LEASE TERM
Long-term Net Lease with an established cannabis company to operate a cultivation facility
ACQUIRED ASSET SIZE
50,000 RSF Industrial Bldg
RENT & EQUITY WARRANTS
Pre-negotiated rights to acquire equity inTenant’s parent company
IN-PLACE LEASE TERM
Long-term Net Lease with an established cannabis company to operate a cultivation facility
EXECUTIVE SUMMARY
REAL ESTATE TERMS
The lease provides for an above market traditional CAP Rate yield based upon rent revenue, but also provides investors with the opportunity to convert a percentage of its rental income into the equity of the Tenant’s parent company through previously issued equity warrants.
THE UPSIDE EQUITY CONVERSION
Given the potential for a M&A capital event, the equity warrant conversion option offers the potential for significant above-market non-traditional returns rarely seen in real estate transactions. This type of deal structuring is both rare and opportunistic.
TO REQUEST A NDA AND FURTHER INFORMATION:
INVESTORRELATIONS@AUXOCAPLLC.COM
21 East Front Street
Red Bank, New Jersey 07701
www.auxocapllc.com
POSSIBLE RISKS UNDER FEDERAL CRIMINAL LAW (Cannabis). Federal laws concerning the growth and sale of cannabis currently conflict with state laws in those states that have legalized the growth, sale and use of cannabis and cannabis related products, whether for medical or adult use purposes. Investors should be aware that compliance with state law in no way assures compliance with federal law. Although the U.S. Department of Justice has noted that an effective state regulatory system and a cannabis operation’s compliance with such a system should be considered as a factor in the exercise of investigative and prosecutorial discretion, its authority to prosecute violations of federal law is in no way diminished by recent changes in the laws of some states. Consequently, investment in cannabis-related assets face potential risks. For example, the federal government can seize, and seek the civil forfeiture of, real or personal property used to facilitate the sale of cannabis products as well as money or other proceeds from such sales. In addition, there is potential risk of civil and criminal investigation or prosecution for aiding and abetting violations of federal law or for conspiring to violate federal law.