Cannabis

Cannabis

Specialized expertise for a growing market

The legalization of marijuana is spreading across the United States, and this shift has been a boon to the value of properties that are appropriate for marijuana growth.

BBG has established a specialty practice dedicated to accurately analyzing and assessing the value of marijuana properties.

The cannabis industry requires a unique approach and specialized expertise for several reasons.

1. Lenders vary on whether they will lend on properties that are being used for marijuana growth. Becasue marijuana is illegal in the eyes of the federal government, some lenders will refuse to loan money for operations. Others are targeting this specific market and branding themselves as “green property” lenders. Many mandate that plants be removed from the property before the appraisal.

2. The purchase of grow facilites may require an all-cash purchaser or a higher interest rate to be financed. These requirements can reduce the pool of buyers and affect value.

3. There is a rapid pace of change related to zoning for marijuana facilities. What is legal today may not be legal tomorrow. Appraisers must stay on top of the federal and local changes. 

4. It can be difficult to find good comparables for marijuana properties. There are often few transactions and limited details of sale. 

Count on our team to use a thorough approach to cannabis property valuations.

Owen Bartels, MAI

Senior Managing Director-West Coast Region

Owen Bartels is a Senior Managing Director with BBG in the Portland, Oregon office and he oversees the West Coast Regions strategic initiatives. He was the 2017 President of the Greater Oregon chapter of the Appraisal Institute. Owen began his commercial real estate career with the Tacoma, Washington, Kidder Mathews office in 2001 working as a researcher and financial analyst for industrial properties. He began his appraisal career in 2003 with the Vancouver, Washington, office of PGP Valuation (now Colliers), and became a Certified General Appraiser in both Oregon and Washington in 2006. He is a Member of the Appraisal Institute.

Owen has appraised properties in cities and towns throughout the Northwest, including southern Oregon, central Washington, the Puget Sound region, both the Oregon and Washington coasts and, of course, throughout the Portland metro area. Appraisal work includes industrial, retail, office, mixed use, both commercial and residential condominium conversions, subdivisions, partial acquisitions, corridors, and specialized consulting projects. Owen has recently expanded his work in Eminent Domain, including work for both public agencies and property owners. Clients include lenders, development companies, government agencies, and private parties.

Owen is involved in local professional organization leadership, serving as President of the Greater Oregon chapter of the Appraisal Institute after four years chairing the Government Affairs committee. He has also been one of the Greater Oregon Chapter’s representatives in Washington DC for the Leadership Development Advisory Committee (LDAC). In 2014 he was awarded the Outstanding Service and Leadership Award by his local Appraisal Institute chapter. In 2015 he received the President’s Service Award for contributions to the chapter.

In addition, Owen is a member of the Government Affairs committee of the Oregon Mortgage Bankers Association (OMBA) and of the International Right of Way Association’s Beaver State Chapter (Chapter 3).

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Our Services

Valuation and Assessment Services

  1. Market study
  2. Feasibility
  3. Zoning reports
  4. Environmental studies
  5. Title
  6. Surveys
  7. Property condition reports
  8. Appraisals
  9. Strategic advisory

Advisory Services

  1. Portfolio valuation
  2. Organization design and governance
  3. Financial reporting
  4. Lease audits
  5. Tax appeal
  6. Monitoring
  7. Cost segregation
  8. Refinancing

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