Cannabis Campus in NorCal | $11,175,000 | 8.08% Cap Rate

CannaMLS ID: 6621
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Price: $11,175,000


Listing Details


Listing Category
Cultivation
Manufacturing
Distribution
Dispensary
Home Delivery
Testing Facility

License Status
Conditional use permit granted
License application submitted
Provisional license granted
Municipal / local license granted
State / annual license granted

Medical
YES

Adult Use
YES

Price: $11,175,000

Listing Status: For Sale

Contact me chad.dixon@streamrealty.com // 949.371.5137

 

Stream Realty Partners is pleased to present for sale 1000 Saint Francis Way located in Rio Vista, California.​ This is a fully entitled cannabis business park with a collection of eight tenants that specialize in cannabis cultivation, manufacturing, and distribution with a storefront dispensary.​ The Property offers investors a rare high-yielding investment opportunity to acquire a fully leased cannabis business park in Northern California.​

The project broke ground in early 2019 with tenants occupying spaces April 2020.​ The project was fully leased upon completion of construction.​ The property features 22’ clear heights, ten 18’ ground level doors, and 4000A/480V power for the property.​

The property is surrounded by Solana County, Contra Costa County and Sacramento County.​ The City of Rio Vista is very accommodating to cannabis, and continues to court operators via friendly tax rates, low cost of living, and inexpensive labor.​

Investment Highlights

  • New Construction – The project was constructed less than two years ago and delivered in Q2 of 2020. There are no other properties for lease to cannabis tenants in the area.

 

  • ​Cannabis Entitlements – The project is fully entitled for all cannabis uses including retail and Type 7 manufacturing, which is generally more difficult to achieve.

 

  • High Yield Returns – This is a unique investment opportunity that offers very high cash returns (almost 50% above market), a sharp contrast to many industrial warehouses in the market. The submarket cap rate for industrial properties is only 5.50%.

 

  • Local Cannabis Tax Rate – Local cannabis taxes in Rio Vista are some of the lowest in the state, offering the tenants a significant edge over competitors in neighboring cities. For example, the retail tax rate is 1% of gross sales for the first year, 2% of gross sales for the second year, then 3% the third year and is capped there.

 

  • Vallejo-Fairfield Market – Rio Vista is an incorporated city in the Vallejo-Fairfield market, which is adjacent to the East Bay market in Northern California. There is 46,500,000 square feet in the Vallejo-Fairfield market with strong rent growth (8.9%) and minimal vacancies (3.0%). The average cap rate in the market is 5.5%, a much lower yield than this property.

 

  • ​Strong Workforce for Cannabis – The market workforce is significantly different from other Bay Area markets. Rio Vista offers a strong blue collar labor, a sought after characteristic by many cannabis companies.

 

  • Strategically Located – The property is strategically located in Northern California, with ease of access to highways 5, 12, and 160. It is only 45 miles away from Sacramento and 60 miles from San Francisco. Furthermore, there is access to the Rio Vista airport, located 2 miles away.


Listing Details

Listing Status
For Sale

Location
Rio Vista, California 94571

Date Listed For Sale:
4/14/2022

Date Last Updated:
4/15/2022

Generating Revenue:
YES

Operational:
YES

Property Details

Buiding Size (sq ft)
34252 sq ft

Lot Size (acres)
2 acres

Built out / Turnkey
YES

Green Zone Confirmed
YES

Pricing Details

Listing Price
$11,175,000

Seller Financing Available?
YES

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