A cannabis dispensary in Long Beach, known as The Bakery, has sold for $11 million. The 8,288-square-foot retail property is located at 1836 Harbor Avenue. It is situated on .74 acres. A foreign investor purchased the property from a Michigan-based private investor. Christian Tremblay and Isaiah Harf of The Stan Johnson Company represented the seller, while Edwin Mariscal of CBRE Group Inc. represented the buyer.
“This is the largest recorded retail pharmacy sale in the state of California, and we are honored to assist our customer in selling this property,” Tremblay said in a statement. “We have seen an increase in demand for cannabis properties in the current pure leasing environment due to their attractive yields and their high sales on a per square foot basis. Additionally, with the prospect of developing secure banking and lending options, We expect this demand to continue.
Foreign investors now own The Bakery.
In a pure lease, tenants may be responsible for everything from maintenance to property taxes. These are incredibly desirable for property owners because they come with guaranteed monthly income without the burden of maintenance and other expenses, making them a bond-like investment, experts agree.
In 2021, net lease investment volume across the country grew 48% from 2020 levels to $92.1 billion, according to data from CBRE Group Inc. The retail sector, the group found, accounted for 14.5% of the net lease assets. According to CBRE data, both suburban and downtown Long Beach saw retail vacancy rates of 3.3% during the fourth quarter, compared to the 6% vacancy rate seen in the Greater LA area overall.
Rent for retail properties in downtown Long Beach was $3.50 per square foot, compared to $2.20 per square foot in suburban Long Beach and $1.81 per square foot in the greater LA area. The bakery was launched in 2020 and its Long Beach dispensary is co-branded with Lemonade, a cannabis brand.
To Read The Rest Of This Article By Nicholas Dupuis on Barometer via LA Business Journal
Published: May 16, 2022
Founder & Interim Editor of L.A. Cannabis News