Investment Overview

Marcus & Millichap is pleased to present an exceptional investment opportunity in a rapidly advancing sector strengthened by a historic federal policy shift. The U.S. government has officially moved to reclassify marijuana from Schedule I to Schedule III, opening the door to expanded research, reduced regulatory barriers, improved access to banking and credit card processing, and enhanced tax treatment for operators. This development is expected to boost industry stability and long-term operator performance, directly benefiting cannabis-anchored real estate assets. This opportunity features a 4,440-square-foot single-tenant property at 595 Bank Street, New London, Connecticut, fully gut remodeled in 2022 with over $1 million in building and tenant improvements. Upgrades include comprehensive interior renovation, modern mechanical systems, and high-end finishes, creating a turnkey, future-proof retail environment designed for long-term occupancy. The tenant, Nutmeg New London JV, LLC d/b/a Higher Collective, operates adult-use retail cannabis dispensaries statewide and is the resulting business of an equity joint venture with Curaleaf, one of the nation’s largest cannabis operators with revenues exceeding $1.3B. The property is secured by a Triple Net (NNN) lease featuring a 10-year initial term, two 5-year renewal options, and 4% annual rent escalations, supporting predictable long-term income growth. The recent increase on December 1, 2025, brings the NOI to $107,987. Strategically located within a designated Opportunity Zone, the property is positioned near a newly completed 140-unit luxury apartment complex, enhancing built-in customer traffic. The site offers outstanding accessibility, steps from Amtrak, the Cross-Sound Ferry, and proximate to major regional employers including Electric Boat, the U.S. Coast Guard, and Lawrence Memorial Hospital. With Higher Collective as the tenant, the recent federal reclassification further strengthens the investment outlook by easing operational burdens on cannabis retailers and improving the financial ecosystem across the industry. The combination of a high-quality tenant, secure NNN lease structure, prime Opportunity Zone location, and newly favorable federal landscape makes 595 Bank Street a standout long-term investment offering both stable cash flow and meaningful appreciation potential.