Burnt River Farms (Nectar) is one of the largest cannabis companies on the west coast and the largest operator in Oregon.
They are operating 43 dispensaries and 10 farms and 400,000 square feet of indoor grow space.
We are buying this property for $5,000,000 at a 10% cap rate.
The property is located in a border town, which allows us to capture the commercial marijuana markets from both Oregon and Idaho.
The deal is structured on a new 10 year absolute NNN lease and 4-5 years options.
Rent terms include 2% rent increases every year in the original term and 10% increases in every option.
Nectar the parent company was recently awarded a license in California, allowing them to expand aggressively on the west coast.
Although this is a conservative core plus deal, it offers a compelling value add component.
Not only will we benefit from the contractual rent increases, there is also an outparcel on the property that we can expand and spin off into the NNN market.