Net Leased Single-Tenant Cannabis Dispensary Sold

The Boulder Group, a net leased investment brokerage firm, completed the sale of a single tenant net leased Meds Café cannabis dispensary located at 100 N Main Street in Cheboygan, Michigan for $1,050,000.

The 2,050 square foot Meds Cafe benefits from its location along N Main Street, which experiences a traffic count of 7,700 vehicles per day. Notable retailers nearby include Walmart, Tractor Supply Co, Goodwill, Dollar Tree, Walgreens, McDonald’s, Burger King, Dairy Queen, Arby’s, Citizens Bank, Speedway, GMC, Carquest, USPS, and Salvation Army. The population is 12,764 within a ten-mile radius, with an average annual household income of $75,869.

The tenant has 8 years of lease term remaining with two 5-year renewal options. There are attractive 12.5% rental escalations every 5 years in both the primary term and option periods. The property was renovated in 2021 and has a roof warranty through November 2035. Meds Café was founded in 2018 and has grown to 7 locations throughout Michigan.

Randy Blankstein and Jimmy Goodman of The Boulder Group represented the seller in the transaction. The buyer is a private investor from Illinois and the seller is a vertically integrated cannabis company located in Michigan.

“Net lease properties with strong store sales and substantial rent increases continue to garner significant investor interest” said Randy Blankstein, President of The Boulder Group. Jimmy Goodman, Partner at The Boulder Group, added, “This deal signifies that cannabis assets remain intriguing as higher yield real estate investments.”

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