Stan Johnson Company, one of commercial real estate’s leading investment sales brokerage firms, has completed the sale of a 4,800-square-foot single-tenant retail property located at 820 Canaveral Trace in Middleburg, Florida. The Jacksonville-area convenience store and fueling station is fully leased to Daybreak Market on a long-term absolute triple net lease. BJ Feller of Stan Johnson Company represented the buyer. The property traded for more than $9.7 million, although the cap rate was not disclosed.  “This was an excellent addition to our client’s portfolio as they looked to reposition their real estate via 1031 exchange and optimize it for their long-term, multi-generational holding strategy,” said Feller, Managing Director and Partner in Stan Johnson Company’s Chicago, Illinois office. “We successfully ensured a smooth upleg and downleg, including placing the Daybreak Market under contract during the completion of construction. We very much enjoyed the repeat collaboration with Plaza Street Partners and CIA Commercial Advisors.”  The large format store reflects the tenant’s latest prototype, and construction was completed in late 2021. The property is situated on 2.26 acres and features 16 fueling stations. The site benefits from strong demographics in the immediate area, along with high traffic counts, proximity to schools and national retailers in the vicinity including Publix and Dollar General, among others. 

Originally published by Los Angeles Business Journal A cannabis dispensary in Long Beach known as The Bakerie has sold for $11 million.  The 8,288-square-foot retail property is located at 1836 Harbor Ave. It sits on .74 acres.  A foreign investor purchased the property from a Michigan-based private investor.  Stan Johnson Co.’s Christian Tremblay and Isaiah Harf represented the seller, while CBRE Group Inc.’s Edwin Mariscal represented the buyer.  “This is the largest recorded retail dispensary sale in the state of California, and we are honored to have assisted our client in getting this property sold,” Tremblay said in a statement. “We have seen an increase in demand for cannabis assets due to their attractive yields in the current net lease environment and their high sales on a per square foot basis. Additionally, with the potential of safe banking and lending options continuing to evolve, we anticipate this demand to continue.”  In a net lease, tenants can be responsible for everything from maintenance to property taxes. These assets are incredibly desirable to owners because they come with guaranteed monthly income without the burden of maintenance and other expenses, making them a bond-like investment, experts agree.  In 2021, net lease investment volume nationwide increased 48% over 2020 levels to $92.1 billion, according to data from CBRE Group Inc.  The retail sector, the group found, accounted for 14.5% of net lease properties.  Both suburban and downtown Long Beach saw retail vacancy rates of 3.3% during the fourth quarter, compared with the 6% vacancy rate seen in the Greater L.A. area as a whole, according to CBRE data.  Asking rent for retail properties in downtown Long Beach was $3.50 a square foot, compared with $2.20 a square foot in suburban Long Beach and $1.81 a square foot in the greater L.A. area.  The Bakerie launched in 2020 and its Long Beach dispensary is co-branded with Lemonnade, a cannabis brand.   

Stan Johnson Company, one of commercial real estate’s leading investment sales brokerage firms, has completed the sale of a multi-tenant retail center located at 9484 Highway 5 in Douglasville, Georgia. The west Atlanta strip center totaled 6,975 square feet and was fully leased to three tenants: Starbucks, Zales and Five Guys. All tenants operate on long-term net leases. Brian Lane, Emery Shane and Billy Benedict of Stan Johnson Company marketed the property on behalf of the seller, a real estate developer partnership of CONNOLLY, Coro Realty and Wilson Development Group. The asset was acquired by a private investor from New Jersey for approximately $5.9 million.  “This three-tenant center sits on arguably the best corner in an area with more than 4.0 million square feet of surrounding retail,” said Lane, Associate Director in Stan Johnson Company’s Alpharetta, Georgia office. “This is evidenced by each of the tenants signing long-term corporate leases, with two of the tenants relocating from within the market to be in this specific location.”  The property was built in 2021 and is situated on 0.94 acres at the signalized corner of Highway 5 and Douglas Boulevard. Just 20 minutes west of Atlanta, the center is an outparcel to Arbor Square, which is anchored by HomeGoods and Burlington. Other area tenants include Kroger, Home Depot, Lowe’s and At Home.  “We were able to generate multiple offers and achieve our seller’s goals on price as well as timing for when they requested to close,” Lane added. 

Originally published by Shopping Center Business The single-tenant net lease (STNL) market has enjoyed quite the ride. Rents are rising and cap rates are at or near all-time lows.  2021 was a record year for STNL transaction volume, with $103 billion in investment sales, according to Stan Johnson Company’s research, and the first quarter of 2022 has already exceeded quarter-one 2021 by more than 30 percent. At the same time, national STNL inventory has remained very constrained.  This makes it a good time to be a net lease seller.  Selling, Buying the Dream “There is still an opportunity for sellers to take advantage of today’s pricing,” says Curtis Hodges, senior vice president in Stan Johnson Company’s Tulsa, Okla., office. “We’ve had a significant compression of cap rates over the last two years. We’re at historically peak pricing, and valuations aren’t likely to get much higher than they are today.”  Enter the first speed bump. With valuations unlikely to continue going up, sellers may not want to wait too much longer. Hodges believes we’re nearing an inflection point where pricing expectations may soon need to be adjusted.  “We’re not there yet – capital for STNL is still abundant, and there’s significant capital sitting on the sidelines,” he notes. “But we’re heading toward what might be a pricing adjustment period, perhaps by mid-year or early in 2023. I think a lot of people are asking themselves when we’ll start to see deals fall off at a higher rate and when assets will be repriced because buyers can’t get comfortable with the leveraged return metrics anymore.”  One investor group that may be more sensitive to these metrics are 1031 exchange investors. STNL transactions are notoriously popular with this cohort, but while they would enjoy the yield obtained in this uber-competitive, peak pricing market, they would need to find an asset to trade into as well.  That’s easier said than done right now. Still, with the market at a high, there’s a chance that inflection point could hit after the sale has occurred but before the new trade has closed, resulting in optimal conditions.  “If the equity from the 1031 downleg proceeds is enough to invest in the upleg property without securing high loan-to-value (LTV) debt, you’ll be able to pull the trigger on deals that those with larger financing constraints will have a tougher time with,” Hodges adds. “Those with large equity positions in STNLs who want to do a 1031 can end up in an optimal position and with more favorable pricing on their upleg than today’s peak pricing.”  Naturally, this also means cash is king once again.  “Cash buyers will remain in the market,” Hodges continues. “Especially as people sell out of this market. There are some investors that have waited patiently for this window of opportunity as well.”  Of course, peak pricing isn’t the only trend to watch in this market. Supply chain issues. Inflation. Higher costs of construction and materials. Labor shortages. Political unrest. Then you have interest rates. The Fed raised its targeted federal funds rate by 0.5 percent in early May – the largest increase in more than 20 years. With multiple rate hikes forecasted, upward pressure is expected to be placed on cap rates.  As the saying goes, however, there are opportunities — and winners — in every market. Aside from timing a 1031 exchange perfectly, Hodges believes risk can yield some, well, yield.  “A lot of people are looking at other asset types seeking a little higher yield,” he says. “This could include net leases with shorter lease terms, lesser credit, or looking at secondary markets with favorably trending demographics. You want to look at your investment risk appetite and work with a seasoned advisor in the market who can fully underwrite deals thinking about lease term, location, non-investment grade, private credit or track emerging tenant concepts.”  Emerging Winners Hodges is particularly bullish on emerging tenant concepts that are highly convenient.  “If the business model allows for quicker stops inside the store, or allows people to not have to go into a store at all by providing a drive-thru or curbside pick-up, that concept is generally a winner,” he says.  Other STNL winners include quick service restaurant concepts like Sonic, Chipotle, Slim Chickens and Dutch Bros. Coffee, Hodges notes. These tenants are adding more drive-thru lanes, reducing or excluding sit-down space, and rapidly expanding.  “We’re seeing strong cap rates for Dutch Bros.,” Hodges adds. “In some cases, they’re selling for lower cap rates than Starbucks.”  “Medtail,” the merging of healthcare and retail, is another STNL concept that’s been in the spotlight, adds Lanie Beck, director of corporate research, marketing and communications at Stan Johnson Company.  This term emerged several years ago as healthcare tenants began to occupy retail space, she says. “Urgent care facilities and dental practices, among others, started taking advantage of vacancies in shopping centers to get closer to their desired client base, and now in some cases, these tenants are embracing the single-tenant, freestanding retail format — think Aspen Dental or Clarkson Eyecare.”  The next wave of retail repurposing could be on the horizon, Beck predicts. “Drugstores like Walgreens and CVS are needing to service more and more customers through their drive-thru lanes, whether it’s for prescription pickups, testing, vaccines or urgent care services. Post-pandemic, we’re seeing significant delays and back-ups, as most of these properties only feature a single drive-thru lane.”  Beck thinks the answer could lie with vacant retail bank branches. “If drugstores, or other medical providers, had three, four, or five lanes in play at once, think how many more customers could be serviced. I could see this becoming a reality in ten-plus years.”  Where the Opportunities Lie With many investors looking to the net lease retail market for long-term holds, it’s important for buyers to be confident in a sector, a geography and a tenant or concept before pulling the trigger.  “If you can’t buy in a primary market, then look at markets where there are favorable demographic changes happening,” says Hodges. “Lesser known secondary or tertiary markets often have plenty of strong tenants and growing concepts for investors to consider. If you study the history of the net lease market, there are opportunities today to buy properties that may see the same evolution as dollar stores 20 years ago, for example.”  So where would Hodges and Beck put their money?  “As a net lease investor, I’d look for that emerging tenant I believed in. I’d look at their business model and want to feel confident they were sustainable,” Beck says.  Hodges agrees. “Certain QSRs I personally like. I’d probably go with a well-located Dutch Bros. in a growing secondary market. They’ve figured out quick, quality service. The market’s big enough for two major specialty concepts, so they can compete with Starbucks. They’re also moving into markets where they can succeed.”  And just like that, a new winner might be born. 

Stan Johnson Company, one of commercial real estate’s leading investment sales brokerage firms, has completed the sale of a 40,522-square-foot retail property leased to Caliber Collision. The flagship store, located at 296 Adams Avenue in Memphis, Tennessee, is more than double the tenant’s typical size. Stan Johnson Company’s Ronnie Givargis represented the seller, a Florida-based private investor. The buyer, an individual investor also from California, was represented by Brandon Sherrill of Stan Johnson Company. Both investors were involved in 1031 exchanges, and the property traded for approximately $6.7 million.  “I’m proud of our ability to effectively collaborate across teams and offices here at Stan Johnson Company,” said Givargis, Senior Director in Stan Johnson Company’s Newport Beach, California office. “It’s not every day we get a chance to work on unique assignments, but together, Brandon and I were able to sell one of the largest buildings Caliber Collision has in operation and meet the objectives of both our investor clients.”  The recently upgraded property is situated on 1.24 acres in a dense infill location in downtown Memphis. The facility’s larger size allows work on commercial vehicles, including emergency vehicles and school buses. The property is in close proximity to numerous economic drivers including FedEx Forum, Memphis’ Medical District and the city’s historic Beale Street. The tenant operates on a long-term net lease that features rental increases and option periods.  “It was great being able to work with Ronnie and keep this transaction in house,” added Sherrill, Associate in Stan Johnson Company’s Tulsa, Oklahoma headquarters. “We have seen a lot of demand for Caliber Collision within the last few months given the credit profile and internet resistant services provided by this tenant. The location in downtown Memphis was very interesting to work on, since it isn’t a typical location for Caliber.” 

Sale leaseback transactions have gained popularity in recent years as owner occupants look to extract the value of their real estate in order to free up capital. But beyond the motivations that drive traditional sale leasebacks, many business owners have found success leveraging this transaction type to fund M&A activity. Franchisees are the primary actors exploring these creative avenues, and while a sale leaseback could be used to fund M&A needs across nearly all asset classes, the most frequent property types involved are quick service restaurants, convenience stores and car washes. These property types are often owned and operated by franchisees with growing portfolios of multiple assets, and M&A activity is commonplace. One Seller, Two Buyers and a Broker So, how does this actually work? In an M&A sale leaseback, you typically have four players: the franchisee seller of the business and assets, the franchisee buyer of the business and future tenant of all properties involved in the sale leaseback, a real estate investor who buys the real estate assets, and a broker that facilitates the transaction.  "Sale leaseback transactions are a common vehicle for owner occupants to extract value from their real estate, but this creative solution is gaining popularity with franchisees as they expand through mergers and acquisitions." To start the process, the franchisee seller and franchisee buyer identify each other and enter into an agreement for the operations and real estate. A broker enters the conversation early on as well. They need to evaluate the sale leaseback of the real estate component and this analysis often influences the terms of the agreement between franchisees. Additionally, the broker helps to identify a real estate investor. At the close of the transaction, two events occur: one franchisee purchases the business assets and assumes the franchise agreements and third-party leases, and at the same time, concurrent with closing, the franchisee buyer executes a long-term triple net lease with the real estate investor.  In this type of transaction, proceeds from the sale of the real estate are transferred from the investor to the franchisee seller, while proceeds from the sale of the business come from the franchisee buyer. The new investor now has guaranteed income coming from their tenant in the form of a long-term lease. That lease typically features attractive terms including a triple net lease structure – making the tenant responsible for all taxes, insurance and maintenance costs – along with regular rent increases and lease extension options.    A Creative Solution to Fund Growth This creative funding solution may appeal to many candidates, including those interested in limiting their exposure to real estate and minimizing or helping to bridge the typical 25 to 30 percent cash equity need required to complete a transaction. A company may view the cash flow of their business as more valuable than the static return of owning the real estate. They may be in a rapid expansion mode and unable to tie themselves to multiple loans or the contingencies that come with them. This solution also works well for emerging franchisees that aren’t sitting on a surplus of cash or those that don’t have an established lending relationship necessary to complete larger transactions. For this type of candidate, there are real estate investors that have extensive experience helping smaller franchisees grow into larger companies. They will not only buy the first round of real estate but will subsequently help fund new acquisitions, work with the franchisee on upcoming capital expenditures and open up more opportunities for acquisitions than the franchisee would have if they were simply relying on their franchisor and brokers.  Low Inventory, High Demand Creates Ideal Environment As we approach mid-year 2022, market conditions are ideal for these transactions, and franchisees considering this strategy are encouraged to act. Inventory is low and demand for sale leasebacks continues to be incredibly high, but today’s market uncertainties could shift the environment quickly. Inflation, rising interest rates, continued cap rate compression especially in the net lease retail sector, supply chain issues, labor shortages – these factors all have the ability to influence market dynamics, and franchisees considering this creative funding vehicle are urged to watch the market.     To download a copy of this report, please provide the following information: hbspt.forms.create({ region: "na1", portalId: "7279330", formId: "f465878d-b7b5-4a74-ace8-549108cb50cf" });

Stan Johnson Company, one of commercial real estate’s leading investment sales brokerage firms, has completed the sale of Kimmell Crossing, a 44,962-square-foot shopping center located at 636-648 Kimmell Road in Vincennes, Indiana. Shadow-anchored by Walmart, the center was fully leased at the time of sale to 10 tenants. Stan Johnson Company’s Ryan Roedersheimer represented the seller, Regency Properties, a developer based in Indiana. A North Carolina-based private buyer, DPPM Management, acquired the asset for approximately $4.6 million. Both parties were involved in 1031 exchanges.  “Once again, we were able to help all sides achieve their goals,” said Roedersheimer, Director in Stan Johnson Company’s Cincinnati, Ohio office. “The seller had a capital call deadline and use for the proceeds, while the purchaser wanted to expand his portfolio with a stabilized asset that provided a little more yield to it.”  The property is situated on 4.24 acres off the exit ramp of U.S. Highway 41 and boasts excellent visibility and access via multiple points of ingress/egress, including a signalized intersection. Tenants include Dollar Tree, Maurices, T-Mobile, CATO and other national retailers.  “Not only did both sides achieve their goals, but the seller is now managing the property for the out-of-state buyer,” Roedersheimer added. “They have developed a great relationship throughout this process. As is true with each project I oversee, it is always the hope that parties come together in a healthy and meaningful way. That’s exactly what we accomplished with this transaction.” 

Stan Johnson Company, one of commercial real estate’s leading investment sales brokerage firms, has completed the sale of a multi-tenant strip center located at 160 West Town Square Way in Oak Creek, Wisconsin. The Shoppes at Drexel totals 10,351 square feet and is fully leased to five tenants. Stan Johnson Company’s Ronnie Givargis represented the seller, a New York-based individual investor. The property was acquired for $5.9 million by an investor group out of Cedar Rapids, Iowa. Both parties were involved in 1031 exchanges.  “At 5.94 percent, this was one of the lowest cap rates for a strip center in Wisconsin,” said Givargis, Senior Director in Stan Johnson Company’s Newport Beach, California office. “Through our targeted marketing efforts, we generated multiple offers and ultimately selected a buyer familiar with the local area.”  The strip center was built in 2017 and is situated on 1.45 acres in a southern suburb of Milwaukee. Tenants include Mod Pizza, Men’s Hair House, Five Guys, Crumbl Cookies and Potbelly. The property is an outparcel to Drexel Town Square, the city’s premier mixed-use development comprised of 85 acres of retail, medical, residential and government operations. The site benefits from a dense surrounding population of more than 140,000 residents earning an average annual household income exceeding $83,000 within a five-mile radius. 

Originally published by GlobeSt The Great Recession, the e-commerce revolution and a global pandemic constituted an unprecedented 1-2-3 punch for retail. The good news is that the much-beleaguered commercial real estate sector has bounced back, and investors are taking notice. That’s according to Margaret Caldwell, Stan Johnson Company’s managing director & partner, and Jeff Cox, managing partner of the CRE brokerage and advisory firm and sales leader of the east region, who note the outlook, especially for multi-tenant retail’s evolution, is looking up.  “The top trend is that in 2021 retail took off again,” said Caldwell. “Prior to and during COVID-19, retail had been quite challenged. We were seeing only a handful of bidders show up for an asset, but now there’s a significant number of investors bidding on retail properties. Additionally, pricing has returned to levels last seen in 2007, and in some cases, cap rates have been even lower than that last benchmark.”  New investors are entering the retail market, perhaps rolling out of the multifamily or industrial sectors in pursuit of more opportunity. And institutional investors, including REITs, are active again. Caldwell reports that “huge volumes of capital are being raised and deployed for multi-tenant retail product.”  “After what could probably be described as a deep chilling effect during the pandemic, we’re experiencing significantly more leasing and investment sales activity,” Cox added. “Rents are also increasing as vacancies are being absorbed with little to no retail development.”  The retail sector, and specifically multi-tenant open air shopping centers, have come a long way since the Great Recession, after which “malls started to slowly fall out of favor,” according to Caldwell. Grocery anchored open-air properties have remained the bright spot in the post-downturn days.  “Following the Great Recession, e-commerce was very much still in its infancy,” Cox said. “And we’ve all seen that its impact on the sector was significant in terms of shopping patterns, preferences and logistics.”  Retail started to improve around 2011-2012, once challenged assets were sold off, and then settled into a new groove a couple of years later until 2020 when COVID-19 hit. After several quarters of lackluster investment activity during the height of the pandemic, multi-tenant retail has come back to life, and “there’s been a ton of growth in store sales,” said Caldwell. “We’ve seen some centers where 2021 sales increased 20% to 30% on average – this is because consumers want to shop in stores.”  COVID-19 provided shoppers the perfect excuse to buy a significant number of items online, but post-pandemic, that reliance is waning. “We are beginning to see online sales stabilize and, in some cases, decline,” agreed Cox. “This has ultimately resulted in investors understanding the resilience of brick-and-mortar retail.”  Cox added, “moving out of the pandemic, we’ve been encouraged that in-store shopping has rebounded. A lot of this can be attributed to the fact that retailers continue to evolve, attracting shoppers to new and different shopping venues and experiences.”  The outlook of multi-tenant retail is bright with more and more capital getting into the investment game. Retailers are continuing to be innovative, and they’re looking for ways to incorporate experiential elements into their formats. In today’s post-pandemic environment, amenities and experiences are important to consumers, and today’s expectations will help shape the future of retail. 

We are honored to be named as a Retail Influencer by industry news leader, GlobeSt.com! We are committed to serving clients with all their single- and multi-tenant retail needs for investment sales, corporate solutions and financing.  Retail Influencers 2022 Excerpt of article originally published by GlobeSt Without a doubt, the retail sector has seen some dark days especially since the start of the pandemic, when predictions called for a recovery period that would take years. But, much like hotels which were supposedly on a similar grim path, the retail sector has rebounded nicely, even with Covid-19 still part of our lives. Shoppers have returned to the stores, e-commerce is taking less of a bite out of total retail sales and it is forecast that this year there will be more store openings than closures. In the following pages, we acknowledge the men and women who successfully navigated these changes and made a meaningful impact on the sector in the last year.  STAN JOHNSON CO. With a historic focus in the single-tenant net lease sector, Stan Johnson Co. is now in its fourth decade of operation and has expanded its service platform. The firm has completed more than $40 billion in transactions nationwide and continues to be regarded as an authority in the net lease space, while it broadens its focus into other sectors and services. The commercial real estate brokerage and advisory firm, led by president and CEO Stan Johnson, focuses on investment sales transactions involving retail, office, industrial, health care and specialty properties and it provides acquisition, disposition, sale-leaseback, capital markets and advisory services for institutions, developers, investment funds, corporate occupiers and private investors nationally. The firm’s expertise includes single-asset and portfolio sales, as well as sale-leaseback transactions and 1031 exchanges that span all types of retail assets including single-tenant net lease, unanchored strip centers, neighborhood and power centers and more. Throughout its existence, Stan Johnson Co. has closed more than 5,000 retail transactions totaling more than $23 billion in sales activity. In the past three years, the firm notably closed a net lease CVS Pharmacy in Puerto Rico, a $68.4 million retail portfolio of 27 properties, a 10-unit quick service restaurant portfolio sale for $13.7 million, a Burlington-anchored community center in Virginia for $11.1 million, and a convenience store sale-leaseback for $9.4 million. In 2020, the company announced the firm’s first acquisition, as Atlanta, Georgia-based Shane Investment Property Group joined Stan Johnson Co. to further support its growth in the multi-tenant retail sector.   

Excerpt of article originally published by GlobeSt Capital poured into the booming single-tenant net lease sector in the first quarter, with sales volume up 30% year-over-year.   According to recent research from Stan Johnson Company, the STNL market reported activity at around $21.7 billion. Over the last three months, the sector saw “negligible” movement in the overall cap rate, which moved down 3 bps to 5.84%.  “Following a record-setting 2021 with unprecedented levels of investment sales activity in the final quarter of the year, there was no expectation that the single-tenant net lease market was positioned for back-to-back quarters of such volume,” Stan Johnson Company analysts note in a report on the Q1 data. “Instead, predictions called for just enough carried momentum to position the market well enough to have a respectable follow-up year. Despite current headwinds—with inflation raging and interest rates rising—the market delivered on those predictions for the most part.”  The firm says “it is highly unlikely and perhaps even impossible” that this year will see activity surpassing 2021 levels, but “we had a healthy start.”   The industrial sector drove most investment activity and accounted for more than half of the quarter’s overall total.  Office also logged $6.9 billion in total, thanks largely to Google’s purchase of a single-asset Manhattan office building last year.  “Even without the Google transaction, the single-tenant office sector would have come close to meeting its historic average, indicating investor confidence has rebounded from the height of the pandemic when the future of office use was much more uncertain,” the report states.  Single-tenant retail had the most significant decline quarter, down 66% from Q4 numbers but more in line with demand levels Stan Johnson Company analysts say they’ve seen in recent years. Meanwhile, multi-tenant retail logged $14 billion in sales in the first quarter amid rising investor demand.  Private investors led activity and accounted for 36% of the buyer pool, followed by US-based institutional investors and REITs, at 25% and 23% respectively. 

Stan Johnson Company, one of commercial real estate’s leading investment sales brokerage firms, has completed the sale of The Bakerie, a cannabis dispensary located at 1836 Harbor Avenue in Long Beach, California. The 8,288-square-foot retail property sold for $11.0 million. Christian Tremblay and Isaiah Harf of Stan Johnson Company represented the seller, a Michigan-based private investor. Edwin Mariscal of CRE Advisory Group represented the buyer, a foreign investor who resides part time in California.  “This is the largest recorded retail dispensary sale in the state of California, and we are honored to have assisted our client in getting this property sold,” said Tremblay, Associate Director in Stan Johnson Company’s Chicago, Illinois office. “We have seen an increase in demand for cannabis assets due to their attractive yields in the current net lease environment and their high sales on a per square foot basis. Additionally, with the potential of safe banking and lending options continuing to evolve, we anticipate this demand to continue.”  Situated on 0.74 acres, the property is located at the signalized intersection of Harbor Avenue and Pacific Coast Highway near the on/off ramp of Interstate 710, which provides the site with incredible visibility. The Bakerie is a premium California-based cannabis brand that launched in 2020 by a group of industry veterans, and the tenant operates on a long-term net lease with rare annual rent increases. The property is co-branded with Lemonnade, the sister company of Cookies, which is one of the top cannabis brands in the world. The well-located site is just 22 miles south of downtown Los Angeles, 19 miles from LAX and six miles from the Port of Los Angeles.