Beyond / Hello: Cannabis Dispensary Santa Barbara, California

Marcus & Millichap is pleased to present the opportunity to acquire a Beyond / Hello Cannabis Dispensary in Santa Barbara, CA. This is a new location that opened in 2020. The property features a long-term lease with almost 13 years remaining and three, five-year tenant renewal options. The lease offers 2.25 percent annual rent increases throughout the base term and option periods. There is a blended cap rate of 7.93% over the base lease term, with annual increases.

Beyond / Hello Santa Barbara is the brand’s flagship marijuana dispensary location in California. Jushi Spent approximately. $5.2 million for the acquisition of the cannabis retail license and approximately $1.26 million on tenant improvements, including new roof and A/C units. A high barrier of entry, this location is one of only three recreational dispensaries currently operating in the city of Santa Barbara. No more than six store-front dispensaries are allowed per code to operate in Santa Barbara County. The lease is guaranteed by parent company, Jushi Holdings Inc, a national multi-state cannabis company developing and operating high-end retail locations.

This marijuana dispensary features a population of over 134,000 within five miles of property, and a well above average annual household income of $136,694 within one mile, $131,328 within three miles, and $135,909 within five miles. This property is located off of Highway 101, which merges from the Pacific Coast Highway with more than 135,000 vehicles daily – running along the northern California coast and is one of the most scenic roads in the world.

The subject property is located within walking distance of La Cumbre Plaza, an outdoor shopping mall featuring retailers including Target, Macy’s, Bristol Farms, Chico’s, Pottery Barn, Lure Fish House, Islands Restaurant, Plaza Deli and many others. Surrounding national brands include Ross, Petco, Whole Foods Market, Trader Joe’s, Gelson’s Markets, Gold’s Gym, O’Reilly Auto Parts, Chase Bank, Wells Fargo, T-Mobile, AT&T, Verizon, Starbucks, McDonald’s, Jack in the Box, Chick-fil-A, CVS, Land Rover, BMW, Lexus, Porsche, Mercedes Benz and many more.