Investment Overview

Marcus & Millichap is pleased to present the opportunity to acquire a R. Greenleaf Cannabis Dispensary in Albuquerque, NM. This is a brand new, 12-year, triple net lease with nearly full-term remaining. The lease offers two, five-year tenant renewal options with 10 percent rent increases every five years throughout the base term and option periods. The property is offered at a blended cap rate of 8.61% during the base lease term. As of April 1, 2021, recreational cannabis is legal in New Mexico. This is a brand-new dispensary, recently renovated and now open. Store sales are on track to exceed $5 Million annually. A full renovation was recently done to the building, including a new roof with a 15-year warranty and two new HVAC systems. There is also a full façade that now includes plate glass windows which provides the exterior a new modern design. The Tenant will do business as R. Greenleaf, owned and operated by parent company, Schwazze. Since December 2021, Schwazze has closed acquisitions adding 14 cannabis dispensaries to their portfolio – 10 in New Mexico and four in Colorado as well as four cultivation facilities in New Mexico, one in Colorado and one manufacturing asset in New Mexico. The Subject Property is outparcel to an Albertson’s Market and Ross-anchored center and is directly across the street from a brand-new Starbucks. The Albertson’s is ranked first out of 13 in a 50-mile radius, and 94th percentile nationally in terms of foot traffic per Placer.ai. In addition, the property is a half mile from Smith’s Food & Drug Store. Albertson’s and Smith’s are the two main grocery stores in the Los Lunas Submarket. Other surrounding national retailers include PetSmart, Dollar Tree, Family Dollar, Ace Hardware, AutoZone, O’Reilly Auto Parts, Cricket Wireless, Metro by T-Mobile, Boost Mobile, McDonald’s, Burger King, Taco Bell, Pizza Hut, Domino’s Pizza, Bank of America, Wells Fargo, Walgreens and many more. The Albuquerque metro’s current population is 942,000, which is a 1.4 percent increase over 2021. The Area will soon benefit from a new Amazon Fulfillment Center, opening in 2023. This new facility will total over one million square feet and create more than 600 full-time jobs. Albuquerque is set to be the home of Netflix Studios – the company has plans to more than double their current production hub in Albuquerque, making it their main production facility in North America. Netflix is committing an additional $1 billion in production spending. The studio expansion will add 300 acres to the existing studios. This will create an estimated 1,000 production jobs in nm over the next 10 years, with 1,467 construction jobs to complete the expansion.