Net Leased Star Buds Dispensary Sold

The Boulder Group has completed the sale of a single tenant Star Buds dispensary property located at 5740 South College Avenue in Fort Collins, CO for $1,900,000. Zach Wright and Brandon Wright, of The Boulder Group, exclusively represented the repeat seller in the transaction. The seller was a Midwest-based real estate development and investment company. The purchaser was a local Colorado-based investor.

The 4,861 SF property is located approximately four miles south of Colorado State University along South College Avenue, the trade area’s primary thoroughfare with over 35,000 vehicles per day. The surrounding area is affluent with average annual household income of approximately $150,000 within a mile.

The property features a long-term triple net lease with rental increases every five years. The lease is guaranteed by Medicine Man Technologies Inc., a publicly traded company (OTCMKTS: SHWZ) which does business as Schwazze. They’re a vertically integrated cannabis company with approximately 35 dispensaries, 6 grow facilities, and 2 manufacturing plants.

“Single tenant properties located in Colorado with long-term leases are in high demand amongst net lease investors and generally sell for extremely low cap rates. Single tenant cannabis properties trade at a considerable cap rate discount providing yield-seeking investors enticing opportunities,” stated Zach Wright, Vice President.

“The market for STNL properties priced under $2M continues to be extremely active,” added Brandon Wright, Associate.

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