5860 88th St - Warehouse FOR SALE


Sacramento, CA 95828
$12,150,000 USD
949-682-5867
5860 88th St, Sacramento, CA for Sale
$12,150,000 USD
Warehouse - FOR SALE
1/14
null | 8.17% Cap Rate

5860 88th St
Sacramento, CA 95828


HIGHLIGHTS

  • 8.2% Cap - NNN lease w/ corporate guaranty from Connected International Inc., zero defaults, escalating to 9.2% in 2029 and 10.4% at the 2034 renewal
  • $82,688/month base rent + NNN — zero landlord expense obligations, perfect on-time payment record since lease inception
  • Institutionally backed tenant — Connected Cannabis Co., $55M+ raised, $9.5M 2025 EBITDA, ~$15M projected 2026, distributes to 175+ dispensaries in CA
  • Address-locked occupancy — cultivation license is site-specific; tenant cannot relocate without a multi-year regulatory restart from scratch
  • Defensible conventional floor — heavy-power infrastructure supports $1.25/SF market rent; conventional re-tenanting yields 5.14% cap at asking
  • 41,600 SF on 2.34 acres, M-2S zoning — Power Inn corridor, direct I-5 and US-50 access, Sacramento's primary cannabis industrial zone

OVERVIEW

5860 88th St, Sacramento, CA 95828 is a 41,600 SF single-tenant NNN leased cannabis cultivation facility offered at $12,150,000, representing an 8.2% in-place cap rate and $992,256 in annual net operating income. The property is leased to Connected Cannabis Co. under a Triple Net structure with a corporate guaranty from Connected International Inc., zero late payments since inception, and 12.5% rent escalations every five years — growing the in-place cap rate to 9.2% in 2029 and 10.4% at the first renewal in 2034. Connected Cannabis Co. is one of California's most respected cannabis operators. Founded in Sacramento in 2009, the company is fully vertically integrated across cultivation, production, distribution, and retail in California, Arizona, and Florida. It distributes to 175+ dispensaries statewide, has raised $55M+ in institutional capital, and reported $9.5M in 2025 EBITDA with approximately $15M projected for 2026. The property sits on a 2.34-acre M-2S parcel in Sacramento's Power Inn corridor, the city's primary cannabis industrial zone, with direct access to I-5 and US-50. The facility features heavy-power infrastructure and a large secured yard that would support a broad range of conventional industrial tenants — a meaningful consideration given that Sacramento non-cannabis industrial NNN assets have traded at 5.5% to 6.5% cap rates, and this building's upgraded infrastructure supports a $1.25/SF conventional rent floor. A cannabis cultivation license is address-specific. Connected cannot relocate without restarting a multi-year licensing process from scratch. Sacramento is not just a lease market for this tenant — it is where the company was founded, and where its supply chain, brand, and retail relationships are rooted. The structural motivation to stay is unusually strong. Offered individually and as part of a three-property Connected Cannabis NNN portfolio marketed exclusively by WeCann, alongside 5232-5234 Mission St, San Francisco and 8111 37th Ave, Sacramento. All three leases are co-terminus, expiring March 31, 2034, with identical renewal and escalation structures.

FOR SALE DETAILS

PRICE

$12,150,000 USD

PRICE/SF

$292 USD /SF

CAP RATE

8.17%

% LEASED

-

TENANCY

Single

SALE TYPE

Investment

BUILDING DETAILS

PROPERTY TYPE

Industrial

PROPERTY SUBTYPE

Warehouse

ADD'L SUBTYPES

Distribution, Manufacturing, undefined

TOTAL BUILDING SIZE

-

STORIES

1

YEAR BUILT

1980

UTILITIES

Lighting

CLEAR CEILING HT

30 Ft

DOCKS

3

DRIVE INS

4

PARKING SPACES

35

LAND DETAILS

LAND ACRES

2.34

LAND SF

102,018

ZONING

M-2S

APN/PARCEL ID

062-0080-029

ASK ABOUT THIS PROPERTY

Jason PiazzaWeCannMore Info
949-682-5867

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Jason PiazzaWeCannMore Info
949-682-5867

By clicking the button, you agree to Showcase's Terms of Use and Privacy Notice.