The subject property is a concrete tilt up, Class “B” 17,281 SF single-story industrial building on 1.03 acres located in Santa’s Ana’s “Green Zone”. The property is well located near the 405 & 55 freeways just off of Harbor Blvd. There are currently two units: front retail and back warehouse. The site has 28 parking stalls, 3 truck doors and 18′ high clearance in the warehouse. The Cannabis Retail Store tenant, Ashe Society, currently pays $37,141 rent mo. on a 10 year lease with semi-annual rent increases and is only utilizing the front retail space. The Tenant’s lease includes the use of the 14k warehouse space for permitted cultivation and manufacturing however, the Tenant and/or Owner may decide to sub-lease this vacant space to another user.
What we like about this Trust Deed opportunity:
- 45.00% LTV on Appraised Value and 43.76% Net LTV
- 10.25% annualized return
- $37,141 current rental income w/ semi-annual rent increases
- 12 months Guaranteed Interest
- Borrower renovated building in 2019
- Cannabis industry – low impact by COVID – customer demand remains high
- Established cannabis brand with permits for retail, distribution, cultivation and manufacturing
