Zoned Properties, Inc., a developer of industrial and retail properties for the licensed marijuana industry, completed the construction of an expansion for its tenant at the Company's Medical Marijuana Business Park in Tempe, Arizona, enabling a significant increase in rental payments that began February 1, 2017.
In addition, the Company also announced it has begun the pre-construction design phase for the next 10,000 square foot expansion of cultivation space for its tenant at the Medical Marijuana Business Park.
"Completing the development of this sophisticated facility on schedule and according to our tenant's specifications has enabled the seamless expansion of their business and is providing Zoned Properties with increased rental payments and cash flows to support our growth objectives," commented Bryan McLaren, Chief Executive Officer of Zoned Properties.
"The relationships we develop with the local community and our tenants ensure we are investing for growth at a pace that is mutually beneficial and reduces the business and financial risk for both organizations."
Zoned Properties began construction to expand the leased space for its tenant at the Tempe facility from 5,000 to 15,000 square feet during the third quarter of 2016 and expects to increase the developed and leased space to 25,000 square feet by the end of 2017.
The tenant at the facility intends to have the largest infusion kitchen and processing facility in Arizona and has already begun cultivating and operating in the new space. As a result, the monthly rental payments for the space increased by nearly 90% effectiveFebruary 1, 2017, according to the terms of the lease agreement with the tenant. The Company has reserved an additional 15,000 square feet of space for the tenant's future expansions.
Zoned Properties has begun the pre-construction design phase for the next 10,000 square foot expansion of cultivation space at the Medical Marijuana Business Park in Tempe, Arizona for its existing tenant. This project is expected to commence construction in the third quarter of 2017 and drive increased monthly rent payments upon completion in the 1st quarter of 2018.
Zoned Properties is a strategic real estate development firm whose primary mission is to identify, develop, and lease sophisticated, safe, and sustainable properties in emerging industries. The Company acquires commercial properties that face unique zoning challenges and identifies solutions that can potentially have a major impact on the cash flow and value generated. Zoned Properties targets commercial properties that can be acquired and potentially re-zoned for specific purposes. Zoned Properties does not grow, harvest, sell or distribute cannabis or any substances regulated under United States law such as the Controlled Substances Act.