Pineapple Express Executes Purchase Agreements For An Additional 3.78 Acres In Desert Hot Springs – Yahoo Finance

The purchases are expected to close within the next 120 days and are subject to customary closing conditions. We plan to repurpose the remaining acreage of the existing parcel our tenant currently uses to add three more buildings and a total of 42,000 additional square feet to the existing 23,000 square feet of warehouse space already built. We intend that the other parcels will each have one 20,000 square foot building. All together we desire 125,000 square feet of rentable warehouse space occupying about 7.5 acres, stated Matthew Feinstein, CEO and Chairman of the Company. We would lease to eight other cultivating tenants, besides our current tenant, on terms that are favorable for the prospective tenants and also beneficial to our growth. The proposed terms of the Companys rental agreements are as follows: The prospective tenant/consulting client would pay $500,000 inclusive of a new 20,000 square foot modular warehouse space; city/state permitting and licensing for cannabis cultivation; and fees paid to the city/state, architects, and planners in pursuit of securing the necessary city/state approvals. The prospective tenant immediately signs a lease that only goes effective once permitting is approved by Desert Hot Springs. The lease rate would be set at $8 per square foot per month with no rent due for the 3 month period following delivery of a constructed modular building in vanilla shell condition. That lease rate will increase to $10 per square foot per month if and when recreational laws are enacted in California. The lease would run 10 years unless the permit is revoked through no fault of the tenant. Upon lease signing, the tenant pays a $160,000 security deposit along with one months rent of $160,000.

To read more visit http://finance.yahoo.com/news/pineapple-express-executes-purchase-agreements-130000729.html