As more states legalize medical and recreational marijuana, more investors — including the Treehouse real estate investment trust — are tapping the cannabis industry’s serious real estate opportunities.

A collaboration between MedMen Enterprises Inc. and Stable Road Capital, Treehouse recently completed a $133 million raise that will partially fund its purchases of retail and industrial properties for recreational and medical cannabis facilities.

“MedMen’s relationship with Treehouse will allow us to unlock significant value for MedMen shareholders by spinning out our real-estate holdings and deploying the proceeds” into other growth opportunities, MedMen CEO Adam Bierman said in a statement.

Through the capital raise and acquisition of MedMen properties, Treehouse looks to capitalize on the rapidly-growing U.S. cannabis industry. The cannabis industry is projected to grow to $75 billion in gross sales by 2030, according to Wall Street research firm Cowen & Co.

MedMen, based in Culver City, Calif., intends to use the proceeds from its the prospective transactions to assist in funding the buildout of its national footprint that includes 76 retail licenses and 16 cultivation and manufacturing licenses in 12 states. MedMen currently operates 16 stores and 3 cultivation and manufacturing facilities.

After the initial transaction, Treehouse will have a three-year right of first offer on additional MedMen-owned facilities and development projects. With the launch of Treehouse, MedMen has the opportunity to significantly reduce future capital expenditures related to its retail and cultivation licenses.

Recreational marijuana is now legal in 10 states, and medical marijuana is legal in 33. If public support trends continue, medical marijuana is expected to continue its growth as an industry. Spending on marijuana in North America is expected to jump from $9.2 billion in 2017 to $47.3 billion in 2027, according to BDS Analytics.

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