Several entities on one lease?
Hi CRE world,

I've got an interesting situation on my hands. I'm part of a group that is applying for a few cannabis licenses. Our group is made up of two entities (one cultivation and one processing) with the intention of sharing the space.

However, the entities need to apply separately and each demonstrate control of the site. Any thoughts on the best way to structure the Master lease agreement? My first thought is to have one entity lease the space and sublease to the other, but wanted to know if some sort of Tenants in Common arrangement might work in this situation.

Thoughts?
[{"id": "fj1nv2i", "text": "I wouldn't do the sublease arrangement, you can have two entities on a lease. Both would be equally responsible parties on the contract.", "replies": [], "depth": 1}, {"id": "fj1ogn7", "text": "Create a cartel with a strong enforcer division as head of the familia to hold the master lease. By cartel, I mean holding company. A higher levanton in the form of a double damage deposit and renter's insurance may be necessary.", "replies": [], "depth": 1}, {"id": "fj203rl", "text": "Your issue sounds largely with regulatory compliance, i'd ask your lawyer how you need to set this up to get your licenses approved.\n\nFrom the landlords side if these companies are owned by the same people and all the guarantees are joint and several it doesn't really matter.  It actually could even help them since they can't go after the sub tenants assets in a sublease.\n\nFocus on YOU first and make sure you are compliant with what you need and explain this to the landlord and it'll be fine.", "replies": [], "depth": 1}, {"id": "fj2cxjl", "text": "I'm currently negotiating a deal with many entities and different ground lease, master lease, sublease agreements. In not, however, a lawyer; I'd suggest consulting one. \n\nThat said, would you be able to set up another entity that is jointly controlled (50/50) by the two entities. That new company would lease the space. You could incorporate language into the operating agreement specifying each party needs to be consulted before making lease decisions to be extra safe. Then both entities can show control and both have a say.\n\nI think this is what one poster above is referring to by hold company??", "replies": [], "depth": 1}, {"id": "fj2l4x3", "text": "Think you're making this more confusing then needed. 1 Lease, both entities be jointly and severally liable.", "replies": [], "depth": 1}]