Thor Equities’ thunder roared over a Chicago cannabis tenant, as a judge’s order allows its unpaid-rent suit to move to another venue.
A judge granted the private equity firm’s request to dismiss its suit in federal court over alleged unpaid rent at a Fulton Market space against cannabis dispensary MedMen last month.
Thor has said it plans to refile its case in a state court within a jurisdiction that the weed business is legal and regulated. MedMen had tried to prevent its landlord’s suit from moving to a state court by filing a separate lawsuit, arguing that marijuana’s federally illegal status prevents Thor from being able to enforce a lease. Attorneys representing MedMen and Thor didn’t return requests for comment.
The case demonstrates the quandaries that can arise for cannabis businesses landlords. It’s a growing industry that is gaining greater legitimacy but remains under a patchwork of varying state and federal regulations.
Thor sued MedMen earlier this year for nearly $1 million in unpaid rent at 942-944 West Fulton Street. The dispensary leased the space for more than two years and owed more than $950,000 for failing to pay the base rent of $70,727, operating costs of $2,667 and insurance costs of $556 for 11 months, according to the landlord’s initial complaint.
The dispensary inked a 15-year lease for the 23,000-square-foot warehouse style space in August 2019, months before Illinois legalized marijuana on Jan. 1, 2020. The lease provided for an annual rent of $800,000, to increase each year to $1.2 million in the fifteenth year.
MedMen’s subsequent filing doesn’t dispute that the business hasn’t paid rent since before August 2021 and surrendered the premises at 942-944 West Fulton Street to Thor Equities in February.
This isn’t the first time Thor has sued a cannabis business over unpaid rent. The High Times dispensary had to pay the firm $4.9 million as a result of a lawsuit from Thor, though the business never opened in San Francisco.
Read more
Commercial
Chicago
Thor shops venues in lawsuit as weed firm tries escaping unpaid rent
Commercial
Chicago
Thor Equities sues cannabis firm for $1M unpaid Fulton Market rent
Commercial
Chicago
Chicago-area dispensaries part of Diddy’s $185M cannabis purchase