Investment Overview

Marcus & Millichap is pleased to present the opportunity to invest in a brand-new, fully renovated Sunburn Cannabis dispensary in Stuart, Florida. The landlord recently completed an extensive $600,000+ renovation including a new roof, HVAC, windows, electrical, plumbing, and luxury interior finishes, ensuring long-term integrity and reduced capital needs. Beyond the stability of a new 15-year lease with 3% annual rent bumps (increasing to 5% if cannabis sales become legal in FL with tenant offering for sale to the public), investors can benefit from accelerated and bonus depreciation for meaningful near-term tax advantages (consult with your tax advisor). The property is being offered at an above-market cap rate for a stabilized asset in an exceptional location. It also offers an average cap rate of approximately 10.1% and median cap rate of approximately 10.3% over the remaining base lease term, based on the contractual rent schedule. Sunburn Cannabis is a fast-growing, premium Florida cannabis operator with strong financial backing—this asset combines strong tenancy with explosive industry upside. In March 2024, Sunburn secured $34 million in debt financing from AFC Gamma to refinance debt, strengthen working capital, and support strategic expansion in Florida and other markets. Today, Sunburn Cannabis operates 16 dispensaries across Florida with additional locations planned. Located on Federal Highway (U.S. 1), with ~57,000 vehicles per day, the property sits in the heart of Stuart’s dominant retail corridor, surrounded by some of the nation’s most recognized brands. Within minutes, shoppers and visitors have access to Publix, Target, Walmart Supercenter, Lowe’s, The Home Depot, BJ’s Wholesale, Sam’s Club, Aldi, The Fresh Market, Best Buy, Dick’s Sporting Goods, Chick-fil-A, Starbucks, LongHorn Steakhouse, Chili’s, and many others. The Property is only 1.5 miles from Treasure Coast Square Mall with over 115 retailers, a 16-screen Regal Cinema, and the newly opened Elev8Fun family entertainment center—drawing families, tourists, and regional shoppers from across Martin County. Hospitality demand is equally strong. The property is within walking distance of Hampton Inn & Suites and Home2Suites by Hilton, offering convenient lodging for visitors to Stuart’s growing healthcare, tourism, and recreation sectors. The corridor is also within close reach of Cleveland Clinic Martin North Hospital, multiple golf courses, and the St. Lucie River waterfront—all fueling consistent activity around the site.