Ron Osborne, Managing Director/Broker of SperryCGA | RJ Realty, represented the Buyer, GCDC LLC, a foreign investor, in the purchase of a 1,730-square-foot retail property located at 26655 S. Dixie Highway in Naranja.
The deal closed August 30.
GCDC, LLC purchased the property from POR Naranja, LLC for $2,769,230.
The seller was represented by Barry Wolfe and Alan Lipsky of Marcus & Millichap.
This is the sixth transaction Ron Osborne has completed with this buyer and his second purchase of a property with a cannabis tenant. The investor likes the higher returns with annual rent increases as well as the true NNN leases that all tenant improvements are handled by the tenant.
Osborne believes the upside in these transactions is the future full legalization for statewide recreational use and decriminalization. At that time, the cap rates will decrease dramatically, and the valuation will increase. While this may take several years, the investor is receiving a better than average return.
Osborne has represented GCDC, LLC for the last year and they are looking to acquire additional properties this coming year. Due to the higher cost of capital and the cost of windstorm insurance, they will be seeking higher returns.