Innovative Multi-Business Hub - LoopNet · 2018. 9. 5. · Innovative Multi-Business Hub CONTENTS...

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Innovative Multi-Business Hub 5 5849 88th Street Sacramento, CA 95828 FOR SALE | APPROVED CULTIVATION~MANUFACTURING~DISTRIBUTION CENTER License # 00915268

Transcript of Innovative Multi-Business Hub - LoopNet · 2018. 9. 5. · Innovative Multi-Business Hub CONTENTS...

Page 1: Innovative Multi-Business Hub - LoopNet · 2018. 9. 5. · Innovative Multi-Business Hub CONTENTS Exclusively Marketed by Lu Ann Henderson Commercial Lic: Dre# 01912126 Cell 916-798-8559

Innovative Multi-Business Hub

55849 88th StreetSacramento, CA 95828

FOR SALE | APPROVED CULTIVATION~MANUFACTURING~DISTRIBUTION CENTER

License # 00915268

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IInnovative Multi-Business HubCONTENTS

Exclusively Marketed by

Lu Ann HendersonCommercialLic: Dre# 01912126Cell [email protected]

Daniel "Danny" StevensonBroker AssociateLic: DRE# [email protected]

We obtained the following information above from sources we believe to be reliable. However, we have not verified its accuracy and make no guarantee, warranty or representation about it. It is submitted subject to the possibility of errors, omissions,change of price, rental or other conditions, prior sale, lease or financing, or withdrawal without notice. We include projections, opinions, assumptions or estimates for example only, and they may not represent the current or future performance of theproperty. You and your tax and legal advisors should conduct your own investigation of the property and transaction.

1900 Point West Way Suite 161 Office 916-929-2000Sacramento, CA 95815

01 Executive SummaryExecutive Summary 4Location Summary 5

02 Property DescriptionProperty Features 7Aerial Map 8Property Images 9

03 Rent RollRent Roll Details 13

04 Financial AnalysisIncome & Expense Analysis 15Disposition Sensitivity Analysis 16

05 Additional InformationMarket Projections 18Demand Dynamics 19California Leading 20U 21

License # 00915268

U.S. Cannabis Retail Sales

License # 01406150www.hendersoncre.com

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Innovative Multi-B

usiness Hub | Executive Sum

mary

Executive Summary

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IInnovative Multi-Business Hub Executive Summary | 04

OFFERING SUMMARYADDRESS 5849 88th Street Sacramento CA

95828MARKET Sacramento CityBUILDING SF 40,800 SFAPPROVED BUILD OUT SF 58,724LAND SF 100,100 SFYEAR BUILT 1979APN 062-0080-060

FINANCIAL SUMMARYOFFERING PRICE 14,000,000.00NOI (CURRENT) $42,995,650

Approved Cultivation, Manufacturing andDistribution Multi Cannabis Business Facility,Entertaining Offers With Poof Of Funds

Gross Revenue Projection of $35,000,000.00 -$43,000,000.00 Annually

All Building Permits Have Been Approved for58,724 SF Multi-Business Hub Build-Out

Complete And Approved Engineered Plans

4,000 Amps 3 Phase 480 V Already At Building

Approved (CUP) Conditional Use Permits Each ForCultivation, Manufacturing And Distribution Allunder One Roof

General Contractor And Design Team In Place ForImmediate Construction Build-Out

The Building Is Positioned Well For A Value-AddInvestor, And An Owner-User

Possible To Start Operations Within 3-6 Months,Given All Permits And Business Entitlements InPlace And Saving Years Of Municipal Scrutiny WithUncertain Results

Sellers Back Financing Is Available, 10% AnnualInterest ( 3-5 years term) @ 50% LTV,

Serious Inquiries Only. Creative Deals InvolvingReal Estate, Buyer Must Have Capital And Proof OfFunds

www.HendersonCRE.com for more information

Approved State of the Art Multi-Business Cannabis Facility

This is a major opportunity to own a large-scale Cannabis cultivation, concentratemanufacturing and Distribution license in a pre-approved Build Out of 58,724 s.f. City ofSacramento has already issued the license which is fully transferable to a new owner.The full build out has yet to happen, and there are a couple options a buyer may wish toexplore to get the install completed, The Building already has existing 4,000-amp 480 V, 3Phase.This rare, one of a kind two-story facility is designed for 22,000 sf cultivation canopy,complete build out construction to accommodate 600+ lights. Also included under thesame roof, is the distribution center, packaging center, extraction facility, kitchen foredibles production, trim room, mixing room, multiple dry rooms, and mother, clone andpropagation rooms. Another unique feature the building plans include an air shower andgowning room, making for a neat clean room environment. Other great features in thisfacility is the employee break room with a locker room, ADA bathrooms, and an elevatorfor easy access to the second floor. The state-of-the-art security facility is one of the mosthighly sophisticated designs in the industry.With a multi-business hub, you can be at ease regarding the safety of your employeesknowing there is less change of hands of products outdoors.This Multi-Million Dollar Producing Facility is available with many turn key optionsincluding builders on site, seller financing and existing enough power available. Seller iswilling to stay on to provide construction oversight, Management and EmployeeSupervision from initial construction through ongoing operations after close of escrow.I'll Entertain most reasonable offers with proof of funds. Buyer should see a 100%+ returnafter 24 months of full scale operation.

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IInnovative Multi-Business Hub Location Summary | 05

This State Of The Art Multi-Business Hub is Locatedin the City of Sacramento, State Capital of California.

Access to the most effective and affordable entrypoint into the most powerful tech economy in theworld and the world-class venture capital and toptech accelerators in Silicon Valley.

SACRAMENTO is now the #1 location for Bay Arearesidents looking to relocate. 24,000 people moveto Sacramento from the Bay Area every year. Morethan Denver, Seattle, Portland, Austin and PhoenixCombined!

36,5240 students currently enrolled in a 4-yearuniversity within 100 miles. Stanford-Berkeley-UCDavis-Sacramento State. Nearly a fifth ofSacramento’s tech job applicants are from the BayArea.

Greater Sacramento is outpacing California ingrowth of highly qualified workers. 33% higher theCalifornia average. We’re the 9th highestconcentration of bachelor’s degree holders in STEM,among the largest 50 US metro areas.

Median home prices in the Sacramento region isaround $350,000. Office space, we’re cheaper thanthe top 20 MSA markets.

We’re spending $3.65 Billion in Sacramento’s urbancore. Plus, we have access to quality lifestyle withNapa, San Francisco and Lake Tahoe within arm’sreach.

The Greater Sacramento region is committed tobuilding a business- friendly market. We are themost profitable state to do business amongFORTUNE 500 Companies.

Regional Map

Locator Map

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Innovative Multi-B

usiness Hub | Property D

escription

Property Description

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Aerial Map

Parcel Map

Additional Maps

Property Images

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IInnovative Multi-Business Hub Property Features | 07

Site DescriptionNUMBER OF UNITS 1BUILDING SF 40,800APPROVED BUILD OUT SF 58,724LAND SF 100,100LAND ACRES 2.30YEAR BUILT 1979ZONING TYPE M2NUMBER OF STORIES 2NUMBER OF BUILDINGS 1LOT DIMENSION 325 x 308NUMBER OF PARKING SPACES 59CEILING HEIGHT 22GRADE LEVEL DOORS 1

MECHANICALHVAC Combinational SystemFIRE SPRINKLERS YesELECTRICAL / POWER 4,000 Amps 480 V 3 PhaseLIGHTING TBD

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IInnovative Multi-Business Hub Aerial Map | 08

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IInnovative Multi-Business Hub Property Images | 09

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IInnovative Multi-Business Hub Property Images | 10

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IInnovative Multi-Business Hub Property Images | 11

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Innovative Multi-B

usiness Hub | R

ent Roll

Rent Roll

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Tenant Profile

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IInnovative Multi-Business Hub Rent Roll Details | 13

Lease Term Rental RatesSuite Tenant Name Square

Feet% of NRA Lease Start Lease End Begin Date Monthly

Base RentMonthlyPSF

Annual BaseRent

AnnualPSF

Lease Type Options/Notes

1 Cannabis Canopy 40,000 68.12% 10/01/19 10/31/23 FUTURE $160,000 $4.00 $1,920,000 $48.00 NNN Cultivation can produce $20-$25 Million annually.

10/01/2019 $164,800 $4.12 $1,977,600

10/01/2020 $169,744 $4.24 $2,036,928

10/01/2021 $174,836 $4.37 $2,098,036

10/01/2022 $180,081 $4.50 $2,160,977

10/01/2023 $185,484 $4.64 $2,225,806

2 Extraction 2,160 3.68% 10/01/19 10/31/23 FUTURE $8,640 $4.00 $103,680 $48.00 NNN Calculation from companiesown supply, distributionrevenue stream is $5-$6Million annually.

10/01/2019 $8,899 $4.12 $106,79010/01/2020 $9,166 $4.24 $109,99410/01/2021 $9,441 $4.37 $113,29410/01/2022 $9,724 $4.50 $116,69310/01/2023 $10,016 $4.64 $120,194

3 Packaging 504 0.86% 10/01/19 10/31/23 FUTURE $2,016 $4.00 $24,192 $48.00 NNN

10/01/2019 $2,076 $4.12 $24,918

10/01/2020 $2,139 $4.24 $25,665

10/01/2021 $2,203 $4.37 $26,435

10/01/2022 $2,269 $4.50 $27,228

10/01/2023 $2,337 $4.64 $28,045

4 Distribution 794 1.35% 10/01/19 10/31/23 FUTURE $3,176 $4.00 $38,112 $48.00 NNN Not inclusive of oil-basedproducts like vape and edibleswhich is another $5-$6 Millionannually

10/01/2019 $3,271 $4.12 $39,25510/01/2020 $3,369 $4.24 $40,43310/01/2021 $3,471 $4.37 $41,64610/01/2022 $3,575 $4.50 $42,89510/01/2023 $3,682 $4.64 $44,182

5 Edibles 613 1.04% 10/01/19 10/31/23 FUTURE $2,452 $4.00 $29,424 $48.00 NNN

10/01/2019 $2,526 $4.12 $30,307

10/01/2020 $2,601 $4.24 $31,216

10/01/2021 $2,679 $4.37 $32,152

10/01/2022 $2,760 $4.50 $33,117

10/01/2023 $2,843 $4.64 $34,110

Totals 44,071 $176,284 $2,115,408

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Innovative Multi-B

usiness Hub | Financial A

nalysis

Financial Analysis

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IInnovative Multi-Business Hub Income & Expense Analysis | 15

INCOME CURRENT PRO FORMAGross Potential Cultivation/Mfg.Revenue

$31,500,000 $43,000,000

Gross PotentialDist/Edibles/PKG Revenue

$11,500,000

Annual CAM Fee $100,000

Gross Potential Business Income $43,100,000 $43,000,000

Effective Gross Income $43,100,000 $43,000,000

Less: Expenses $104,350 $102,850

Net Operating Income $42,995,650 $42,897,150

EXPENSES CURRENT PROFORMA

Real Estate Taxes $14,000 $14,000

Insurance $2,500 $2,500

Common Area Maintenance(CAM)

$200 $200

Management Fee $1,500

Repairs & Maintenance $2,000 $2,000

Water / Sewer $1,000 $1,000

Landscaping $150 $150

Utilities $80,000 $80,000

Security $2,500 $2,500

Janitorial $500 $500

Total Operating Expense $104,350 $102,850

Expense / SF $1.77 $1.75

% of EGI 0.24 % 0.24 %

REVENUE ALLOCATION

DISTRIBUTION OF EXPENSES

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IInnovative Multi-Business Hub Disposition Sensitivity Analysis | 16

5 YEAR SENSITIVITY ANALYSISEXIT CAP RATE PROJECTED SALES

PRICESALES PRICE PSF PROCEEDS AFTER

LOAN PAYOFFIRR

0.25% $0 $0 $0 305.81%0.50% $8,579,430,000 $210,280 $8,579,430,000 390.89%0.75% $5,719,620,000 $140,187 $5,719,620,000 371.81%1.00% $4,289,715,000 $105,140 $4,289,715,000 360.26%1.25% $3,431,772,000 $84,112 $3,431,772,000 352.38%1.50% $2,859,810,000 $70,093 $2,859,810,000 346.63%1.75% $2,451,265,714 $60,080 $2,451,265,714 342.21%2.00% $2,144,857,500 $52,570 $2,144,857,500 338.70%2.25% $1,906,540,000 $46,729 $1,906,540,000 335.84%

10 YEAR SENSITIVITY ANALYSISEXIT CAP RATE PROJECTED SALES

PRICESALES PRICE PSF PROCEEDS AFTER

LOAN PAYOFFIRR

0.25% $0 $0 $0 306.94%0.50% $8,579,430,000 $210,280 $8,579,430,000 307.09%0.75% $5,719,620,000 $140,187 $5,719,620,000 307.04%1.00% $4,289,715,000 $105,140 $4,289,715,000 307.01%1.25% $3,431,772,000 $84,112 $3,431,772,000 307.00%1.50% $2,859,810,000 $70,093 $2,859,810,000 306.99%1.75% $2,451,265,714 $60,080 $2,451,265,714 306.98%2.00% $2,144,857,500 $52,570 $2,144,857,500 306.98%2.25% $1,906,540,000 $46,729 $1,906,540,000 306.97%

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Innovative Multi-B

usiness Hub | A

dditional Information

Additional Information

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Demand Dynamics

California Leading

UU.S. Cannabis Retail Sales

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IInnovative Multi-Business Hub Market Projections | 18

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IInnovative Multi-Business Hub Demand Dynamics | 19

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IInnovative Multi-Business Hub California Leading | 20

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IInnovative Multi-Business Hub U | 21

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IInnovative Multi-Business Hub

Exclusively Marketed by

Lu Ann Henderson Daniel "Danny" StevensonCommercial Broker AssociateCell 916-798-8559 916-933-7333License # Dre# 01912126 License # DRE# [email protected] [email protected]

1900 Point West Way Suite 161 Office 916-929-2000, Sacramento, CA 95815 powered by CREOP

License # 00915268License # 01406150

www.hendersoncre.com