Investment Highlights
- New, Long-Term Lease with Three Percent Annual Rent Increases in Base Term and Option Periods
- Brand New Location, Under Construction, Projected Opening April 2024
- Unlike Many Cannabis Dispensaries that are Retrofits of Existing Buildings, this is Brand New Ground Up Construction
- The Rent Payment Will Increase by 10 Percent If and When Florida Allows the Recreational Use of Cannabis and Tenant Begins to Lawfully Offer Same for Sale to the Public
- Seller is Constructing the Interior Buildout for Tenant so Property Owner Can Potentially Depreciate These Improvements (Consult with Tax Advisor)
- Located on Hutchison Boulevard with a Traffic Count of More Than 22,000 Vehicles Daily and Off Panama City Beach Parkway, a Major Route Connecting Various Attractions, Hotels, and Restaurants, With a Traffic Count of Approximately 52,000 Vehicles Daily
- Panama City Beach is Home to More Than 20,000 Hotel, Motel, Apartment and Condominium Units and Approximately 3,728 Apartment and Condo Units Within Three Miles of the Subject Property
- Average Annual Household Income is $86,772 in One Mile and Projected to Reach $100,163 by 2027
- Surrounding National Retailers Include Walmart Supercenter, Lowes Home Improvement, The Home Depot, Publix Supermarket, The Fresh Market, Target, Dick’s Sporting Goods, Bed Bath & Beyond, Old Navy, Marshalls, JCPenney, Michaels, Ross, Rooms To Go, Dollar Tree, Office Depot, Chili’s Grill & Bar, Jimmy Buffett’s Margaritaville, Chick-fil-A, Sonic Drive Thru, Applebee’s, Starbucks, Dunkin’, Taco Bell, Burger King, Pizza Hut, Waffle House, Truist Bank, Regions Bank, AutoZone, O’Reilly Auto Parts and Many More
Investment Overview
Marcus & Millichap is pleased to present the opportunity to acquire a newly constructed Sunburn Cannabis in Panama City Beach, FL. This brand-new location is currently under-construction, expected to open in April 2024. Unlike many cannabis dispensaries that are retrofits of existing buildings, this is brand new ground up construction. The offering comprises a new long-term lease with four five-year tenant renewal options, featuring three percent annual rent increases in both base term and option periods. The seller will fund rent from close of escrow until tenant commences rent payment.
Sunburn Cannabis is a recent entrant in the Sunshine State, holding approval for 11 dispensaries, formerly owned by MedMen Cannabis Dispensaries. The founder of Sunburn Cannabis, Brady Cobb, possesses substantial experience in the cannabis sector. The rent payment per the lease will increase by 10% if and when Florida allows the recreational use of cannabis and tenant begins to lawfully offer same for sale to the public.
The Seller is overseeing the interior buildout for the tenant, allowing the property owner the potential to depreciate these improvements (consult with a tax advisor). The property comes with a roof warranty, and the tenant is responsible for roof maintenance. Additionally, the property benefits from a cross parking and access easement with the adjacent property, Diamond Title Company.
Situated on Hutchison Boulevard, the property experiences a daily traffic count of more than 22,000 vehicles. Positioned off Panama City Beach Parkway, a significant route linking various attractions, hotels, and restaurants, the location witnesses a traffic count of approximately 52,000 vehicles daily. Panama City Beach accommodates over 20,000 hotel, motel, apartment, and condominium units, with around 3,728 apartment and condo units within a three-mile radius of the subject property. The average annual household income is $86,772 within one mile and is anticipated to reach $100,163 by 2027.
The property is situated in the Panama City Metro area along the Emerald Coast, a short distance from the Gulf of Mexico, acknowledged as one of the Top 10 Beaches in the U.S. Panama City Beach attracts around 4.5 million visitors annually. The region’s main workforce is engaged in tourism and hospitality, primarily driven by the appeal of local beaches. Employment is also influenced by the presence of the U.S. Air Force, with various aerospace and defense contractors in the surrounding area supporting Air Force operations.
Surrounding national retailers include Walmart Supercenter, Lowes Home Improvement, The Home Depot, Publix Supermarket, The Fresh Market, Target, Dick’s Sporting Goods, Bed Bath & Beyond, Old Navy, Marshalls, JCPenney, Michaels, Ross, Rooms To Go, Dollar Tree, Office Depot, Chili’s Grill & Bar, Jimmy Buffett’s Margaritaville, Chick-fil-A, Sonic Drive Thru, Applebee’s, Starbucks, Dunkin’, Taco Bell, Burger King, Pizza Hut, Waffle House, Truist Bank, Regions Bank, AutoZone, O’Reilly Auto Parts, AT&T Store, Walgreens, CVS and many more.
