SUNBURN - Prominent Florida Cannabis Operator

Highlights:

• LONG-TERM LEASE | There are over 9 Years remaining on the base term of the lease, providing stability and security for investors.
• HIGH YIELDING INVESTMENT | Property is being offered at a Year-1 in place cap rate of 7.25%.
• EARLY LEASE EXTENSION | The tenant has recently executed a 4-year lease extension, demonstrating their commitment to the site.
• NEW ROOF WITH 15-YEAR TRANSFERABLE WARRANTY | The property's roof was recently replaced in 2023, and it comes with a transferable 15-year warranty.
• FAVORABLE RENTAL INCREASE | 2.50% Annual Rental escalations provide investors with a hedge against inflation.
• PROVEN OPERATOR | Brady Cobb, the CEO of Sunburn, has a track record of success. Previously, he built, grew, and operated in Florida under the name One Plant/Bluma Wellness. After successfully establishing the company, he entered into an agreement to sell it to Cresco Labs, operating as Sunnyside, for $213 million. Following this, Brady re-entered the Florida cannabis market by acquiring MedMen’s Florida assets for a total consideration of $63 million.

Description:

The property is located less than 2 miles away from Florida State University, which had 44,597 students enrolled in Fall 2022. Florida State University ranked No. 11 among all public universities in the United States, according to Niche, a research company that produces in-depth profiles of every school and college in the country. The property is also situated just over 2 miles from Florida A&M University, which enrolls nearly 10,000 students and has consistently held the highest rank among public HBCUs for five consecutive years, according to the U.S. News & World Report Ranking.

The property is located just 1.2 miles from Tallahassee Memorial Hospital, which provides care to a 21-county region in North Florida and South Georgia. In 2022, the hospital recorded 31,190 inpatient admissions and has been ranked as the 12th best hospital in Florida for the 2023-2024 period by U.S. News.

Tallahassee, the capital of Florida, boasts a significant economic presence as the hub of state governance. With over 19,000 employees working for the State of Florida, the city is not only a political center but also a key driver of employment and economic activity in the region.

The property is situated in Tallahassee's thriving Midtown district, strategically positioned to capitalize on substantial consumer traffic. Enjoying a sustained period of growth, Midtown has attracted numerous restaurants and businesses over the years, and the trend continues, making it a dynamic and expanding commercial hub within Tallahassee.

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