The Zenco Offering is a premier net leased cannabis cultivation facility located at 13310 Little Morongo Rd Building 2 Unit B in the city of Desert Hot Springs. The approximately 32,370 SF industrial condo is comprised of a state-of-the-art indoor cultivation and processing facility. It is located in the Southern California Cultivation Park, a newly developed business park in the city of Desert Hot Springs. The business park rests on an approximately 7.91 AC parcel. The property is located directly adjacent to the cultivation facility for Canndescent, the leading provider of cannabis flower in California, and a new cultivation facility currently under construction for Med Men, a publicly traded cannabis company with national operations.
13310 Little Morongo Building 2 Unit B is leased to Zenco on a 7.5 year lease running through October of 2025. There are two, five-year options to extend the term with two percent annual increases. Zenco is a well capitalized cannabis operator with no debt, and is highly invested in this location, having contributed over $5M to date on improvements to the site. They are currently operating on a triple-net lease, with landlord retaining responsibility for the roof and structure. The Zenco facility was completed in 2018 with a fully customized build-out.
Zenco is one of the largest and fastest-growing cannabis cultivation companies in the Coachella Valley. They are a provider of craft cannabis flower and branded products associated with cannabis. Their product portfolio includes craft flower, extracts, and other branded products that pass through a rigorous innovation process. They follow an indoor-grow model with a proprietary system that is designed to maximize the total pounds of flower produced per day. They are currently estimating a grow cycle with production rates more than double the national average for an indoor system. Zenco is 49% owned by CannaRoyalty Corp (CRZ), a publicly traded company with a focus on developing and supporting consumer products in high growth cannabis market segments. CannaRoyalty is an active operator and investor in the global cannabis industry, with a strong focus on California, the world’s largest cannabis market.