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.
Northmarq’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.