Property Description

Listing #5278

Asking Price: $12,150,000

WeCann is proud to exclusively offer one of the highest-yielding large-format cannabis NNN investments currently available in California — 5860 88th St, a 41,600 SF cultivation facility in Sacramento’s Power Inn corridor, leased NNN to Connected Cannabis Co. at $82,688 per month with zero late payments for 7+ years and a full corporate guaranty from Connected International Inc. At an 8.2% in-place Cap Rate, this offering delivers nearly 300 basis points above what comparable non-cannabis industrial assets have traded at in the Sacramento market.

This is one of the largest single-tenant cannabis cultivation footprints available for purchase in California, and the tenant’s motivation to stay goes beyond the lease. Connected Cannabis Co. was founded in Sacramento in 2009 — this facility sits at the heart of their original supply chain, and a cannabis cultivation license is address-specific. Relocating would mean starting a multi-year licensing process from scratch. That structural occupancy motivation, combined with a building whose heavy-power infrastructure supports a credible conventional re-tenanting floor, makes this a fundamentally different risk profile than most cannabis NNN offerings on the market. This property is available individually or as part of a three-property Connected Cannabis NNN portfolio. Contact WeCann today to execute an NDA and receive the full Offering Memorandum.

PROPERTY & LEASE HIGHLIGHTS

• 5860 88th St, Sacramento, CA 95828
• 41,600 SF single-tenant industrial cultivation facility | 2.34 AC lot
• Special Use Cultivation Permits Tied to this Property
• Base rent: $82,688/month NNN
  • Lease expires March 31, 2034 — 2 x 5-year renewal options
  • Rent escalation: +12.5% every 5 years
• Zero late payments for 7+ years — perfect on-time payment record
• Corporate guaranty: Connected International Inc.
• Zoning: M-2S (Heavy Industrial) | Year built: 1979

INVESTMENT RETURNS AT A GLANCE

• Asking price: $12,150,000 | $289/SF
• Annual NOI: $992,256
  • In-place Cap Rate: 8.2%
• 2029 escalation (+12.5%): NOI grows to $1,116,288 — Cap Rate increases to 9.2%
• 2034 escalation (+12.5%): NOI reaches $1,255,824 — Cap Rate grows to 10.4%
• Full term through 2039 (Renewal 1): NOI reaches $1,412,802 — Cap Rate grows to 11.7%
• Downside protection: re-tenanted at standard industrial rents ($1.25/SF/mo), asset still produces a 5.14% Cap Rate at asking, supported by 3,500 AMP heavy-power infrastructure and strong submarket demand
• Available individually or as part of a 3-property Connected Cannabis NNN portfolio

LOCATION & SUBMARKET

• 88th Street corridor — Sacramento’s primary cannabis industrial zone, Power Inn submarket
• 41,600 SF on 2.34 acres — M-2S heavy industrial zoning with large secured yard
• I-5 and US-50 direct access | Rail infrastructure adjacent per aerial
• Sacramento is home to the California Department of Cannabis Control — one of the most legally mature and operationally stable cannabis markets in the state
• Cannabis cultivation licenses are address-specific — Connected cannot relocate its Sacramento production operations without a new license application, creating deep structural occupancy motivation
• Connected Cannabis Co. was founded in Sacramento in 2009 — this facility is the operational origin of the company, not a secondary lease address

Download Flyer

Disclaimer: All information contained herein is provided for general informational and marketing purposes only and is believed to be derived from sources deemed reliable; however, no representation or warranty, express or implied, is made as to the accuracy, completeness, or current applicability of such information. Information presented may include regulatory, licensing, zoning, market, financial, and operational data, all of which are subject to change without notice. Prospective purchasers are solely responsible for conducting their own independent due diligence and are encouraged to verify all information with appropriate governmental authorities and professional advisors prior to making any investment or acquisition decision. This memorandum does not constitute an offer to sell or a solicitation of an offer to buy any security or investment.

Meilad Rafiei – License# 01788589 | Jason Piazza – License# 01405965 – WeCann