NAI Capital has completed a $7.76 million investment sale of a net leased cannabis cultivation facility located at 13310 Little Morongo Road, Building 2, Unit B in Desert Hot Springs, California. The unique 32,370-square-foot industrial condominium was leased to Zenco, a cannabis cultivation company, through 2025.
Senior Associate Rosaleen O’Sullivan with NAI Capital's Investment Services Group represented the seller, Snider Interests LLC, and the buyer, Ten Tree Properties LLC, in the transaction.
"13310 Little Morongo Road is an industrial condo comprised of a state-of-the-art indoor cultivation and processing facility, built in 2018," the team with the company explains. "The property is located in the Southern California Cultivation Park, a newly developed business park in the city of Desert Hot Springs that caters to the Cannabis industry. The business park rests on an approximately 7.91 AC parcel. The facility is located directly adjacent to the cultivation facility for Canndescent, a leading provider of cannabis flower in California, and a new cultivation facility under construction for Med Men, a publicly-traded cannabis company with national operations."
"Zenco is one of the largest and fastest-growing cannabis cultivation companies in the Coachella Valley," they further explain. "They are a provider of craft cannabis flower and branded products associated with cannabis. Their product portfolio includes craft flower, extracts, and other branded products that pass through a rigorous innovation process. They follow an indoor-grow model with a proprietary system that is designed to maximize the total pounds of flower produced per day."
Rosaleen said, "We saw an opportunity to market this unique investment opportunity to a wide range of investors and received a great response. We ultimately negotiated a record price per foot with highly competitive terms through a competitive bidding process and a creative deal structure."
For more information:
NAI Capital
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New York, New York 10022
+1 (212) 405 2500
naiglobal.com