Cannabis Retailer/Commercial Mixed Use (16 One bedroom apartments above)

Based on the most helpful WSO content and insights from previous WSO threads, creatively financing a cannabis operation with a mixed-use property presents a unique opportunity, especially with the added value of residential units. Here are some key points and strategies that might align with your situation:

1. Equity Deal Syndication: This approach is quite innovative, especially in the cannabis industry, which often faces financing challenges due to federal regulations. By offering equity in exchange for capital, you're not only securing the necessary funds for your operation but also aligning the interests of your investors with the success of both the dispensary and the residential units.

2. Location Advantage: Being in downtown Chelsea, MA, a densely populated area, is a significant advantage. High foot traffic and the density of the neighborhood could translate into a strong customer base for the dispensary. This aspect should be highlighted when pitching to potential investors.

3. Real Estate Synergy: The combination of a cannabis retail operation with residential units above is a compelling investment proposition. The rental income from the 16 one-bedroom apartments can provide a steady cash flow, which is attractive for investors looking for a blend of high-growth and steady-income assets.

4. Regulatory Compliance: The fact that the property is zoned for cannabis and the build-out is complete are crucial details that reduce the initial hurdles and risks associated with starting a cannabis operation. This should be emphasized as it demonstrates readiness and compliance, making the investment more appealing.

5. Financial Ask and Equity Offering: Clearly stating your financial needs ($1.5M for the cannabis operation) and your willingness to offer equity in exchange is a good starting point. However, be prepared to negotiate on the equity percentage and have a clear valuation of your business to back up your ask.

6. Networking within the WSO Community: Given the unique nature of your proposal, leveraging the WSO community for networking could be beneficial. There might be members with experience in real estate syndication, cannabis operations, or both who could offer insights, partnership opportunities, or even express interest in your deal.

Remember, when pitching this opportunity, focus on the unique aspects of your proposal, such as the mixed-use nature of the property, the strategic location, and the readiness of the operation. Also, be transparent about the risks, especially those specific to the cannabis industry, and how you plan to mitigate them. This approach will help build trust with potential investors and increase your chances of securing the necessary funding.

Sources: Q&A: Real Estate Syndication, Real Estate Entrepreneurship, Q&A: CRE IB -> Startup founder, Landlord offers reduced rents to tenant in exchange for equity in tenant's business, Q&A: Real Estate Syndication