8.2% Cap Rate | Connected Cannabis Co. NNN Leased Cultivation Facility — Sacramento, CA
5860 88th St, Sacramento, CA 95828
Marketing description
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.
Investment 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
- 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
- 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.
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