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Transatlantic Real Estate, LLC

Real Estate Investment In Cannabis

Closed on 01/05/19
Maximum target reached

min$10k

max$1070k

funding goal 

Reg CF

exemption used 

$3,000,000

pre money valuation 

$300.00

min investment 

$1,387,200

amount committed 

2531

investors 

Security Type
Convertible Note
15% Per Annum
$100 Per Unit of Convertible Note

Steps To Invest

 

Pitch

Who are we

Transatlantic Real Estate LLC is a real estate company that specializes in the acquisition and leasing of properties that support the cannabis industry. We focus on benefiting from the exponential growth in the cannabis sector while remaining non plant touching.

 

 

We build tangible value through hard assets (equipment) and real estate. In this way, we get the best of both worlds. The low-risk participation in a billion dollar sector, and the retention and valuation growth of a hard asset that can be quickly and easily repositioned if needed. We are high growth, low risk and legislation immune.  Come grow with us!

 

 

Problem

GROWERS REDUCED PROFIT MARGINS

As more growers enter the California cannabis market, the cost per pound of product decreases, which forces reduced profit margins for growers.  Growers need to solve for reducing their production costs while increasing their crop yields and cycles to obtain higher profit margins.  Considering the inherent costs [rent, electricity, environmental controls, equipment needed and its maintenance costs, expertise needed to operate complex equipment and the costs of standby failure prevention equipment like generators, backup grow lights, computers, industrial fans, humidity control and much more] to achieve this solution, growers are seeking rural farms with less overhead and technology dependency and risk.  

 

RISKS OF PLANT TOUCHING COMPANIES

Plant touching companies face a high degree of risk as cannabis remains federally illegal.  While California has legalized the growth and use of cannabis, plant touching companies must adhere to strict guidelines to meet compliance requirements.  Beyond state compliance and being inherently riskier, these companies also face issues unique to them such as banking, financing, funding and being unable to avail themselves of federal protections, such as bankruptcy should their businesses fail.  

 

Solution

Transatlantic Real Estate solves the problems faced by growers while remaining immune to changes in legislation by focusing on the underlying real estate asset and being non-plant touching.  We have followed the tried and true model of land banking, land leases, and land asset appreciation.  We are able to benefit from the high lease rates of a licensed cannabis farm, the premium location in coastal California, and the valuation increase by doing property improvements that increase the farm's lease rate, but also the property value as a growth farm that can accommodate multiple high value crops, making it a high yield facility.

 

In this manner, we have multiple layers of security, as well as multiple layers of value creation.

 

Our Company has entered into a contingent acquisition of a 9+ acre farm licensed for cannabis operations in Santa Barbara, California, ideally suited to address the concerns of California growers.  Our farm has 293,000 square feet under canopy with room for expansion.  Not only can it produce more based on total square feet, but it can produce for less as sun is free especially in California, and classic greenhouse environmental mechanisms work extremely well.

 

 

Furthermore, at any point, a grower can increase crop yield by implementing a completely closed grow facility in the same location, potentially a 2 story or vertical closed farm in a small unused part of the lot if demand required it.  In fact, we have entered into agreement with GreenGro Technologies (OTC: GRNH), a world-class provider of green technology with expertise in an indoor and outdoor agricultural science system focused on building multi-level cannabis growth operations, to become an additional long-term tenant.    

 

  

As an open space farm with greenhouses, we are ready to reposition the farm for an alternate high-value crop, through the improvements that favor cannabis, we also add transferable value to another tenant who is not a cannabis grower, and if legislation doesn't change and the demand for cannabis grow spaces continues to increase, we can subdivide the farm and through technology improvements have both greenhouse facilities as well as high yield closed space facilities. 

We have a long-term lease with a very profitable and stable tenant, thus we create a passive revenue stream. 

 

Though land improvements we may increase the lease rate, or subdivide the farm to bring in more tenants, thus increasing to total passive revenue.

 

Achievement & Traction

We have an ownership interest in a premium property in coastal southern California near Santa Barbara. 

 

We have a cannabis grow licensing attached to the property and have a stable prosperous tenant under contract in a long term lease.  

 

We have obtained a valuation from a cannabis real estate expert based on an extensive analysis of the land, location, comparables, market rate on leases, and many other factors that show a significant value on the property as a cannabis grow farm under a hold and lease business model.

 

We have researched and identified the highest value improvements to our land that promote land appreciation, tenant commitment to long-term contracts, higher lease rates, and is easy to reposition the property without waste based on investment during the improvement phase. 

 

We are also actively sourcing and evaluating new investment opportunities to acquire a portfolio of cannabis farms to operate under the same non-plant touching, hold and lease model.

 

Finally, we have engaged with several groups to discuss and be advised as the best way to position our company for a near term exit in the 5 year mark. We are contemplating and discussing with advisors, the second round for continued growth, a move to an IPO or mini IPO, or an equity sale to a public company.

 

 

 

 

Market

The Industrial Real Estate Sub-Market

 

The industrial real estate sub-market currently is performing quite well with vacancies in most, if not all, markets at historical lows due to many factors, including the move away from retail locations to local distribution locations for online retailers.  The evolution of retail shopping is driving industrial real estate demand. Green Street Advisors estimates the increase in e-commerce has led to a 20% annual increase in industrial real estate demand, equating to 30-40 million square feet of space. Green Street estimates 1 million square feet of additional industrial space is required for every $1 billion in online sales. Same day delivery, transportation expenses and access to a strong labor pool are creating the need for e-commerce tenants to increase the quality of their locations.

 

Leasing or owning industrial properties well outside of urban markets to take advantage of lower costs no longer work in an environment in which same day delivery is expected by customers. Demand from e-commerce distribution is putting pressure on other non-traditional users of industrial space creating a great backdrop for owners of the industrial real estate.

 

According to Collier’s International, the U.S. industrial vacancy rate declined for the 22nd consecutive quarter in the first quarter of 2016, declining 10 basis points to 6.3% and down 70 basis points from the first quarter of 2015.

 

Almost 64 million square feet of the industrial real estate was absorbed in the first quarter of 2016, an increase of 9.6% year over year. Due to the lower vacancy rate, asking rates increased for the 18th consecutive quarter, according to Colliers.

 

This supply/demand dynamic creates a significant opportunity for owners of industrial facilities, particularly those focused on niche categories, as options are limited for tenants requiring specialized buildings. We intend to purchase specialized industrial properties that are mission critical to the medical-use cannabis industry.

 

 

Competition

In California, competition has been mainly in Northern California, Humbolt County and larger re-zoned agricultural areas north of Marin County.  Southern California has seen an increase in cannabis grow license applications, yet many are focused on central and urban sites.  On the coast, we have seen limited competition due to the high cost of real estate, and the use of said real estate for luxury and commercial use vs agricultural.  Our location is ideal in that it was an old agricultural site with freeway access and niched in a small pocket very close to the coast.

 

These large multi acre lots are not easy to find.  As there is still a risk of inter-state transportation, we do not feel other state growing facilities are competitors.

 

We are primarily competing against the established large operations in Northern California, and the expensive to setup and operate urban reconversions as seen in Los Angeles / Ventura Counties.

 

Furthermore, we see competition with the growing urban locations reduced by the barrier to entry. It's difficult to  find a large enough urban commercial location that can be zoned for cannabis growth operations, the facility has to be retrofited to meet higher electrical standards at a huge cost, environmental controls and other needed infrastructure to support the growth operation are extremely expensive and expected by a leasing client as existent of to be included in tenant improvements (sunken cost). The operating cost to the tenant is much higher, and cannabis operations are penalized with high energy peak rates that diminish profits. 

 

Our open space, green houses have a  reduced operating cost to the tenant, as through our improvements we will build higher value into the property and the usability which means higher lease rates.  A tenant can afford these higher lease rates as they are still lower when the urban operation costs are factored in.

 

 

Business Model

Our business model has 2 core components: 

 1.- Lease the asset through a long-term lease contract.  This is a very stable and predictable revenue stream as there is marginal overhead, and through our property improvement and potential inclusion of clean energy multiple tax deductions available that will mitigate the reduction or EBITA and increase net profits.

 2.- Asset appreciation. Very traditional hold strategy. We have a premium coastal California farm with easy freeway access, private commercial area, and extremely near the coast. This by itself will increase significantly over time.

     The asset valuation is calculated and increases in 2 ways.

  • Land = Coastal California land in the Santa Barbara County. 
  • Farm = Cannabis zoned and licensed farm in a highly desirable area, the lease rate per square foot will increase faster.

Over time as we improve the property, the lease value goes up, and the ability for the farm to be repositioned to alternative crops is consolidated. That way even in the event of a change of legislation we can position the farm as ready and viable for other high yields / high-value crops like hemp or niche culinary, which fetch similar or even higher prices than cannabis. 

Our long-term strategy is to look at additional farm acquisitions and build a portfolio of high-value assets and potentially position the company for a buy-out from a public company.

 

We want to be clear, we are a real estate focused non plant touching business. We own, improve, manage, and lease real estate approved, licensed, and zoned for cannabis growth at a premium.  Yet, we directly benefit from the exponential growth of the cannabis sector, especially beneficial to us is the medical cannabis sector.

 

The Regulated Medical-Use Cannabis Industry

The regulated medical-use cannabis industry is a rapidly growing industry that we believe presents a unique real estate investment opportunity under current market conditions. In the United States, the development and growth of the industry has generally been driven by state law and regulation, and accordingly, the market varies on a state-by-state basis. State laws that legalize and regulate medical- use cannabis allow patients to consume cannabis for medicinal reasons with a doctor’s recommendation subject to various requirements and limitations.

 

As of June, 2018, 31 states and the District of Columbia permit the medical use of cannabis in some fashion.

 

 

  • Significant industry growth in recent years and expected continued growth
  • A shift in public opinion regarding the legalization of cannabis, especially as it relates to the medical-use of cannabis
  • Increasing momentum toward legalization in many states, particularly for medical uses: 
  • The federal government’s current relaxed enforcement posture toward cannabis-related activities that are legal under state law

 

Team

 

Attorney Birch is supported by a team of experts in the real estate, cannabis and financial markets industry in California.  

Use of Funds

 

 

 

 

Highlights

 

Farm Value:            Appraised at $41M

Current Mortgage:  $15M 

Land Size:             9 Acres; 293,000 square feet of grow space

Type:                     Greenhouse, Farm Land

Zoning:                  Agriculture AG 1-10

 

Value Add Investment

 

Renovation - Phase 1 of renovations to improve usability, technology


Location:      Santa Barbara County, California
Growth size:  80,000 square feet of greenhouse space

 

High demand real estate licensed for medical cannabis cultivators.

 

Come Grow With Us!

 

 

Updates

Nicole Birch
Nicole Birch2 months ago

Dear Transatlantic Real Estate Investors:

 

Colonial Stock Transfer has confirmed that they have sent out investment statements via email.  Please direct all inquiries and requests regarding corrections to your investment statements/certificates to Colonial Stock Transfer.

 

Again, congratulations and thank you for choosing to Grow With Us!

 

Sincerely,

Nicole Birch, Esq.

CEO | Transatlantic Real Estate, LLC

invest@transatlanticfarms.com

Nicole Birch
Nicole Birch2 months ago

Nicole Birch0 seconds ago

Dear Transatlantic Real Estate Family:

We're glad you all decided to Grow With Us!  As an update, we wanted to inform and confirm with everyone that your investment certificates are still being processed by our transfer agent.  We apologize for the delay as the process has taken longer than we anticipated. We appreciate your patience. 

 

Also, kindly note that nothing has changed with your investment.  For those who've submitted inquiries regarding watching the performance of your investment, I encourage you all to please review our investment information contained in pdf at the bottom of this page, which information reflects that the security is a convertible note and not a stock which fluctuates. 

 

For those who have invested, but whose funds may not have been withdrawn from your accounts, please note that our escrow company is still processing investment payments.  Fundanna will communicate with investors as needed regarding processing of payments.

 

Again, I thank you all for your patience and am glad you decided to Grow With Us!

 

Sincerely,

Nicole Birch, Esq.

CEO | Transatlantic Real Estate, LLC

invest@transatlanticfarms.com

Nicole Birch
Nicole Birch3 months ago

Transatlantic Real Estate would like to thank everyone for their interest and support in making our Regulation Crowdfunding Offering a big success.   For those who have successfully submitted an investment, congratulations and welcome to the Transatlantic Real Estate Family – We’re happy you chose to Grow With Us! 

 

What’s next?

Investors will receive future communications from Colonial Stock Transfer, our investment management company.  To learn more about Colonial Stock Transfer, please visit www.colonialstock.com.  Investors should expect to receive their physical securities certificate within 30 days from Colonial.   

 

 

As we are oversubscribed due to the success of the Offering, we regret to inform that some investors may receive cancellation notices as a result of the following:

 

  1. Your bank information was incorrect, and the escrow could not process your payment;
  2. We received an insufficient funds notice; or
  3. We have reached the maximum collected amount, which requires us to return any investments in excess. Please note that funds would be returned to those who submitted their investments last. 

As a reminder, if you haven't sent your investment funds in, it's first received, first accepted.  

 

Please direct questions regarding an investment to support@fundanna.com.  

 

We thank Fundanna for serving as our Offering portal.  A special thank you to Vincent Petrescu who has worked around the clock to ensure our Offering's success.

 

Again, we thank everyone for the success achieved in our Offering!

 

 

Sincerely,

Nicole Birch, Esq.

CEO | Transatlantic Real Estate, LLC

invest@transatlanticfarms.com

Nicole Birch
Nicole Birch4 months ago

Happy Holidays from Transatlantic Real Estate!

Please note that the Offering has been extented for a short term to allow investors who may have had challenges completing the investment process to do so and submit their payments soonest possible.

Additionally, please note that once we achieve our funding goal, we will no longer be able to accept investments.  We encourage those who are still interested in investing with us to ensure their investments are submitted and payment received soonest possible.  If their was an error in your account and/or payment submission, please contact support@fundanna.com for assistance with correcting the error.  We would like all investors who wish to participate to become investors prior to the Offering deadline and funding goal achieved.  However, funds received after we've reached our funding goal will be returned to investors, and we will no longer accept investments after the Offering is closed.  

If you have confirmed your investment and submitted funds, this communication is not for you.  Congratulations on becoming a Transatlantic investor.  We're happy you decided to Grow With Us!

Warmest Regards,

Nicole Birch, Esq.

CEO on behalf of The Transatlantic Real Estate Team

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Q&A


Unfortunately, this securities offering is closed. For questions, please email info@fundanna.com. Thanks!

Stacey Hines
Stacey Hines - Investor3 months ago
I bought a few shares to be paid by check. Are you still taking payments? If so, can I have an address to send it to?
Ronald Hines
Ronald Hines - Investor3 months ago
I signed up a few months ,but didnt send the check. Is it too late?
Tyston Hill
Tyston Hill - Investor4 months ago
What type of return off of a 300.00 investment
Odella Anderson
Odella Anderson - Investor   

Please let me know when TRANSATLANTIC REAL ESTATE  opens to new investors again, thank you.


3 months ago
Denis Mcgrew
Denis Mcgrew - Issuer 3 months ago
My first question is it too late to invest and secondly do you approve the applications prior to accepting investing? I have been corresponding with email questions I just forgot to ask this question. Roland Martin was not clear on exactly the part of the application process besides we must fill it out. Thank You for taking the time to answer my question.
Denis Mcgrew
Denis Mcgrew - Investor   
Also is there anytime that you guy will open this back up for people to invest in other states?
 

3 months ago
Romona Mayeaux
Romona Mayeaux - Investor   
Maam, I thought you closed your on 9 Jan. and I borrowed $300 to invest but now I see that it was closed on the 5th.. will you all please open back up for my grandchildren.

3 months ago
Tyrice Thaxton
Tyrice Thaxton - Investor3 months ago
is there anytime that you guy will open this back up for people to invest?
Willie Ford Jr.
Willie Ford Jr. - Investor4 months ago
I received the email stating the money was received and also see where it was taken out of my account. However, I have not received the mailed packet with the particulars. Is there someone I can get in touch with about this issue?
Nicole Birch
Nicole Birch - Issuer    
Hi Willie,

Thanks for investing with us. Please see my last posted update regarding your investment.

3 months ago
Elnora Johnson
Elnora Johnson - Investor4 months ago

I was hoping that someone would have responded to my question, giving me the opportunity of purchasing stock before closing. I am still interested in investing. Will, there be another opportunity like this through your company with the same price for investing in this particular stock?

Nicole Birch
Nicole Birch - Issuer    
Hi Elnora,

My apologies you were not able to invest. There are no plans for another Offering at the moment. Thank you for your interest in investing with us.

3 months ago
Michelle Jones
Michelle Jones - Investor4 months ago
Hi Ms. Birch

I would like to know if there will be another opportunity to invest in your company. Michelle Jones
Nicole Birch
Nicole Birch - Issuer    
Hi Michelle,

As of right now, there are no plans. Should this change, we will make an announcement. Thank you for your interest.

3 months ago
Elaine Lundy
Elaine Lundy - Investor3 months ago
Hi, Can you advise why the real estate cannibus stock is closed. I live on east coast, it is 11:18pm. I thought I would have up to midnight to buy stock. Is is possible to open it up for me.
thank you
Nicole Birch
Nicole Birch - Issuer    
Hi Elaine,

Thank you for your interest in investing with us. The Offering deadline and countdown correctly displayed the time left to participate.

3 months ago
Elnora Johnson
Elnora Johnson - Investor4 months ago
I would like to invest, but also would like to have the opportunity of speaking with someone making sure that I am not giving away my money. What are the chances of me speaking with someone regarding this stock? If anyone could reach out to me asap I would appreciate it. Thanks Elnora Johnson
James Jones
James Jones - Investor   
I too would like to speak to someone!

4 months ago
Robby Brown
Robby Brown - Issuer 4 months ago
Why won't yall answer questions??
Elnora Johnson
Elnora Johnson - Investor4 months ago
I would like to invest, but also would like to have the opportunity of speaking with someone making sure that I am not giving away my money. What are the chances of me speaking with someone regarding this stock? If anyone could reach out to me asap I would appreciate it. Thanks Elnora Johnson
Rubye Clark
Rubye Clark - Investor4 months ago
Edit
Prestina Lee
Prestina Lee - Issuer 4 months ago
I was just given this information, It says you are offering a extension, I am interested in learning more about this opportunity immediately. I know of another investor involved. Please contact back immediately. MS. Lee
Prestina Lee
Prestina Lee - Issuer 4 months ago
I was just given this information, It says you are offering a extension, I am interested in learning more about this opportunity immediately. I know of another investor involved. Please contact back immediately. MS. Lee
Rosie Hall
Rosie Hall - Investor4 months ago
Dear Ms. Birch, 
I would like to inquire why am I continuing to receive emails notifying me to finalize my investment, since I have confirmed my request, my investment has been withdrawn and I have received my signed subscription agreement?

Please inform me if further actions are required. Thank you for your immediate response.

Sincerely,
Rosie Hall 
Arthur Burrell
Arthur Burrell - Issuer    
Miss Birch can you give me a call. My name is Arthur Burrell you have a record of all my information and phone number please call

4 months ago
Arthur Burrell
Arthur Burrell - Issuer 4 months ago
Hello Nicole Birch, I just want to know is I'm confirmed . Can you send me some paper verify of my investment?
Rise Williams
Rise Williams - Investor4 months ago
Since I’m paying by check who do I make the check out to and where do I mail it.
GARY McCLOUD
GARY McCLOUD - Investor4 months ago
what is the address for wire transfer
Shawn Melvin
Shawn Melvin - Investor4 months ago
New to investing and have been watching this space for a while and would like to jump in my question how do make money? Thank you in advance
Tracie Shelton
Tracie Shelton - Issuer 4 months ago
45.00 return on 300.00 after 18months


Tracie Shelton
Tracie Shelton - Issuer    
It's a 15% return

4 months ago
Tracie Shelton
Tracie Shelton - Issuer    
It's every year thereafter forever

4 months ago
Tracie Shelton
Tracie Shelton - Issuer    
I need to know will the pay out go up if the price of the shares go up.

4 months ago
Phyllis Edmond
Phyllis Edmond - Investor   
Hi. I understand how stock works but I'm a little unclear how we make money on this as an investor since we are investing in the land and not actually the product. Can you please advise how the investors could potential make money?

4 months ago
Christopher Calloway
Christopher Calloway - Investor4 months ago
What tool will be used to monitor the growth of my investment?
Tracie Shelton
Tracie Shelton - Issuer 4 months ago
Overall I think buying stock with transatlantic is a good deal... Especially for a beginner like myself.
Tracie Shelton
Tracie Shelton - Issuer 4 months ago
Overall I think buying stock with transatlantic is a good deal... Especially for a beginner like myself.
KENNETH THOMAS
KENNETH THOMAS - Investor4 months ago
How much can 3 shares yield?
Cassandra Gore
Cassandra Gore - Investor4 months ago
I paid $300.00 on 12/15/2018 and I received a notice today saying that it wasn’t confirmed. I received a notice on the 12:16/2018 saying it had been accepted. If there is something that needs to be done in addition please contact me and let me know or refund the money please. Thanks for your assistance regarding this matter.
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Documents

Form C View Download
Offering Statement View Download

Other Disclosures

Read the Form C filed with the SEC for other important disclosures, like financial statements, Directors, Officers, shareholders with more than 20% of voting rights, and more.
Irregular Use of Proceeds
The Company may make Irregular Use of Proceeds. Such Irregular Use of Proceeds, which may be in material amounts in excess of $10,000, may include by way of example and not limitation: Vendor payments and salary made to management, business associates, relatives, related parties and/or affiliates thereof; expenses labeled "Administration Expenses" that are not strictly for administrative purposes; expenses labeled "Travel and Entertainment"; and expenses that are for the purposes of intercompany debt or back payments.

Without limiting the above, the Company may elect to vary from the proposed use of funds as circumstances or assessments of circumstances following the closing change.
Special Note Regarding Forward-Looking Statements
This offering contains forward-looking statements within the meaning of the federal securities laws. We caution investors that any forward-looking statements presented in this offering, or which management may make orally or in writing from time to time, are based on the Company’s beliefs and assumptions made by, and information currently available to, the Company. When used, the words “anticipate,” “believe,” “expect,” “intend,” “may,” “might,” “plan,” “estimate,” “project,” “should,” “will,” “would,” “result” and similar expressions, which do not relate solely to historical matters, are intended to identify forward-looking statements. Such statements are subject to risks, uncertainties and assumptions and are not guarantees of future performance, which may be affected by known and unknown risks, trends, uncertainties and factors that are beyond the Company’s control. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated, estimated or projected. While forward-looking statements reflect the Company’s good faith belief when made, they are not guarantees of future performance. The Company expressly disclaims any responsibility to update forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

Moreover, we operate in a very competitive and rapidly changing environment, and new risks emerge from time to time. It is not possible to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. In light of these risks, uncertainties and assumptions, the forward-looking events and circumstances discussed in this offering may not occur, and actual results could differ materially and adversely from those anticipated or implied in the forward-looking statements. We undertake no obligation to revise or publically release the results of any revision to these forward-looking statements, except as required by law. Given these risks and uncertainties, prospective investors are cautioned not to place undue reliance on such forward-looking statements.
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