Property Description
Asking Price: $3,300,000
WeCann is pleased to present this exclusive listing to purchase a cannabis-leased NNN investment in Sacramento’s premier cannabis industrial corridor. This single-tenant warehouse is leased to Connected Cannabis Co., one of California’s most respected and financially strongest cannabis operators, and used as a licensed cultivation and production facility. The in-place cap rate is 8.3% on an asking price of $3,300,000, with scheduled escalations growing that yield to 9.3% in 2029, 10.5% in 2034, and 11.8% through the first renewal option.
What sets this offering apart is its downside protection profile. At $287/SF, the asking price carries only a 25% premium over the $230/SF standard industrial market value — not the double or triple market multiples common in retail cannabis investments. Even in a worst-case re-tenanting scenario at standard industrial rents, the asset produces a 5.3% cap rate at asking. The rent premium is modest, the basis is grounded, and the tenant has never missed a payment. 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
- 8111 37th Ave, Sacramento, CA 95824
- 11,500 SF single-tenant industrial warehouse | 0.69 AC lot
- Active California cannabis cultivation license
- Base rent: $22,838/month NNN
- Lease expires March 31, 2034 — 2 x 5-year renewal options
- Rent escalation: +12.5% every 5 years
- Zero late payments — perfect on-time payment record per seller
- Corporate guaranty: Connected International Inc.
- Zoning: M-1S (Light Industrial) | Subdivision: Fuller Industrial Park | Year built: 1961
- Available individually or as part of a 3-property Connected Cannabis NNN portfolio
INVESTMENT RETURNS AT A GLANCE
- Asking price: $3,300,000 | $287/SF
- Annual NOI: $274,056
- In-place cap rate: 8.3%
- 2029 escalation (+12.5%): NOI grows to $308,316 — cap rate increases to 9.3%
- 2034 escalation (+12.5%): NOI reaches $346,860 — cap rate grows to 10.5%
- Full term through 2039 (Renewal 1): NOI reaches $390,216 — cap rate grows to 11.8%
- Downside protection: re-tenanted at standard industrial rents ($1.25/SF/mo), asset still produces a 5.3% cap rate at asking
LOCATION & SUBMARKET
- Power Inn Road corridor — Sacramento’s primary cannabis industrial zone
- Fuller Industrial Park — established M-1S industrial subdivision
- US-50: ~1 mile | I-5: ~3 miles | Rail access 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
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
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