This subject lease features a 10-year remaining NNN lease term with a 3% annual rent increase.
Florida’s cannabis market is enormous and continues to grow rapidly. The tenant, Trulieve, is the sole dominant player in Florida cannabis as they sell more than half of the cannabis in the state despite operating less than one-fifth of dispensaries statewide. As of April, Trulieve owned 58 of the dispensaries in Florida and sold 58% of the flower. Trulieve’s per-store flower sales are three times higher than the state average.
According to Seeking Alpha, Florida is growing rapidly with THC sales up nearly 11x since February and growing at a CAGR of 199%, and flower sales up 3.4x since July 2019, growing at a CAGR of 406%.
This Trulieve location features brand new 2020 renovations that also include a new parking lot, in which the tenant has invested +/- $189,000.
This Trulieve location is within close proximity to many national retailers including Domino’s Pizza, Jimmy John’s, Taco Bell, Wendy’s, Dunkin Donuts, Starbucks, Publix Super Market, Winn-Dixie, and Dollar Tree among others.
The surrounding area is expected to see an 11.41% increase in population over the next five years.
The subject property has excellent visibility and easy access along W. Manatee Avenue, which sees +/- 42,000 vehicles per day.
The property is directly adjacent to the Bradenton Country Club, which has +/- 420 members. The country club recently received a $2.5 million renovation of the clubhouse and golf course, which adds value to the surrounding area and increases demand for the community.
Investors will benefit from the personal income tax-free environment that Florida offers.