Zoned Properties, Inc. ZDPY has acquired an investment property in Pleasant Ridge, Michigan and entered into a long-term, absolute-net lease agreement with NOXX Cannabis to operate a retail dispensary.
"We are thrilled to announce this significant transaction, which marks our entry into Michigan as an investor in real estate. This deal has given us the chance to add a strong, established operator in a desirable market, while diversifying our portfolio. This is an illustration of Zoned Properties adding a fantastic asset and tenant partner to our property investment portfolio by utilizing our value-add investment approach and injecting direct-to-consumer real estate targets into our pipeline," stated Bryan McLaren, CEO of Zoned Properties. "We are excited to strengthen our partnership with NOXX Cannabis and their executive team."
Zoned Properties has acquired the investment property in Pleasant Ridge, Michigan that has been entitled and permitted as a cannabis retail dispensary.
The investment property was acquired for $4.3 million, including $1.85 million in seller financing, which allowed Zoned Properties to further leverage its capital stack at attractive rates.
The investment property is leased to NOXX Cannabis under a long-term, absolute-net lease agreement, which will produce an approximate 13.5% cap rate when straight-lined over the term of the lease agreement. The lease includes 3% annual increases in base rent over the life of the lease term, yielding approximately $580,000 in annual base rental revenue when straight-lined over the life of the lease term.
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