Thank you for sharing!

Your article was successfully shared with the contacts you provided.
Mark Paul Mark Paul is the founder and co-CEO of MJ Real Estate Investors.

LOS ANGELES—While cap rates are bottoming out in nearly all product types, cannabis-related real estate is generating 11% to 15% cap rates. MJ Real Estate Investors is a new investment firm that is focusing on the emerging cannabis real estate market, which it anticipates will become its own asset class after legalization. The firm has already generated double-digit cap rates in their first transactions.

“This space offers opportunities to generate double-digit cap rates. In a cap-rate starved world where we are seeing 4% and 5% cap rates on a lot of things, this is something that will be of interest to a lot of people,” Mark Paul, co-founder and CEO, tells GlobeSt.com. “We have done several deals now at double-digit cap rates, producing yields in the 11% to 15% range without investors having to invest at the company level. We are not growers; we are not cultivators; we are not dispensary owners. We are purely commercial real estate owners and landlords.”

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

Kelsi Maree Borland

Kelsi Maree Borland is a freelance journalist and magazine writer based in Los Angeles, California. For more than 5 years, she has extensively reported on the commercial real estate industry, covering major deals across all commercial asset classes, investment strategy and capital markets trends, market commentary, economic trends and new technologies disrupting and revolutionizing the industry. Her work appears daily on GlobeSt.com and regularly in Real Estate Forum Magazine. As a magazine writer, she covers lifestyle and travel trends. Her work has appeared in Angeleno, Los Angeles Magazine, Travel and Leisure and more.

More from this author



Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2022 ALM Global, LLC. All Rights Reserved.