Michael C. Meade
Co-Founder Michael Meade Brokered the $27.1 Million Triple-Net Cannabis Portfolio
(June 19, 2019) Wilson Meade Commercial Real Estate – the largest commercial real estate firm in the Coachella Valley – has announced that co-founder Michael Meade has closed the biggest sale in the company’s history – a $27.1 million 5-property portfolio with the first and only cannabis real estate operation currently on the New York Stock Exchange (NYSE:IIPR), Innovative Industrial Properties (IIP). The portfolio is comprised of approximately 102,000 sq. ft., fully improved and triple-net (NNN) leased.
“Cannabis companies are becoming viable backstops on NNN leased investments. Cap rates are still in the 12% – 13% range, double the market return when compared to nationally-backed NNN investments, allowing the investors a higher rate of return. As banking opens up and regulation continues its path to full legalization, these CAP rates will go down, adding substantial value to these investors’ assets,” explained Meade. “Wilson Meade Commercial is thrilled to be at the forefront of the real estate component of this groundbreaking industry. It was exciting to work with both the buyer and seller in this transaction, along with WM associate, Anthony Caronna, playing a key role in this company’s further expansion in what is considered a new frontier – particularly here in California.”
The purchase price for the portfolio was approximately $27.1 million in the aggregate (excluding transaction costs), and concurrent with the closing, IIP entered into a long-term, triplet-net lease at each property with a licensed operator. The intention is to continue to operate the properties as licensed cannabis cultivation, manufacturing, processing and distribution facilities in accordance with California regulations.
Michael Meade is one of the top commercial real estate brokers in the Palm Springs area, specializing in Investment properties. Meade also co-owns Desert Rock Development, which is currently developing approximately 1 million sq. ft. of cannabis project(s) in Coachella, California. Learn more at www.CoachellaCannPark.com.
For more information about Wilson Meade Commercial Real Estate, visit www.Wilson-Meade.com.
Wilson Meade Commercial Real Estate is the largest locally-owned investment brokerage firm serving the Coachella Valley. Specializing in sales and leasing, Wilson Meade has expertise in everything from retail, office and industrial transactions, to hospitality, multi-family and land services. Several of the firm’s agents are long-time valley residents who have been influencers with measurable impact on the real estate landscape through their decades of hard work and the transactions they’ve facilitated.