In the July 6th Law360 article, “Calif. Real Estate Regulation To Watch In The Second Half,” Andrew McIntyre authors perspectives on California’s affordable housing crisis and the state’s tough environmental regulations, all while watching real estate-related activity in the wake of the fast approaching vote in November to legalize pot.
Companies are buying land across the Golden State, activating steep increases in land prices, and private equity groups are targeting investments in the California marijuana industry. However, the financing of the federally illegal substance remains to be a sticky issue with big banks hesitant to lend to purchases involving pot.
Ken Miller, a partner at ECJ with significant background in lending and real estate transactions, gave his perspective on the key issue regarding the need for creating new lending models and systems if the vote approves the legalization of marijuana this fall. Miller points out, cities will still be able to regulate zoning for buildings and operators of the dispensaries will have to be “sufficiently sophisticated to really figure out what the requirements are” and to follow them.
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