Bow West Opens Green Space For Cannabis-Related Companies
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This is not your typical green building.
Capitalizing on a growing marijuana industry, Bow West Capital has opened what the company says is LA's first mixed-use building specifically for pot-related businesses.
In November, the Santa Monica-based real estate investment company will open “Green Street,” a seven-story, 67K SF creative office building with retail components at 718 South Hill St. in downtown Los Angeles.
“It’s clear to us that the cannabis industry is growing extremely rapidly and is still in the early stages of what will be a very exciting and dynamic expansion,” Bow West President Sean Beddoe said. “It is also an industry that has attracted very innovative entrepreneurs who will benefit from the facilities and services, as well as the collaboration opportunities, that Green Street will make available to them.”
Catering to cannabis-related companies seems to be a sensible business move in California, which in January became the sixth state in the U.S. to allow licensed shops to sell marijuana to adults 21 and over for recreational use.
The marijuana industry nationwide is expected to have a $40B economic impact by 2021, according to an Arcview Market Research and BDS Analytics study.
Blockchain technology platform Paragon is opening something similar in Hollywood. Paragon Space is opening an 8K SF coworking venue for cannabis-related companies this summer.
Bow West acquired the office building in downtown’s Jewelry District from a private seller for $14M last year.
Beddoe said the firm quickly repositioned and renovated the 1913 building and targeted marijuana-related companies. M-Rad Architecture is overseeing the design. Beddoe said they added a rooftop lounge and a basement where people can gather.
The property is 95% leased, Beddoe said. Green Street Agency, a branding and business development consultancy for cannabis businesses, is a minority investor in the project and the flagship tenant occupying three full floors.
Other tenants include Vicente Sederberg LLC, a Denver-based attorney's office dubbed The Marijuana Law Firm.
One floor is a coworking space where more than a dozen companies have already signed up, and another will be for a private club catering to executives of cannabis-related companies, Beddoe said.
The building will also have an art gallery and restaurant.
Green Street Agency President Rama Mayo said the project will “be a center for professional services, product development, innovation, entrepreneurship and cross-branding opportunities that will further accelerate the growth of the incredibly dynamic industry we are proud to serve.”
Beddoe said this is the first of many marijuana-related business campuses his company plans to explore.
“This is going to be our flagship property as we look for more opportunities to mix real estate with cannabis businesses,” Beddoe said.