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SPERRY RJ Realty’s Ron Osborne Closes Fourth Cannabis Dispensary Deal In Ocala, Florida

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Ron Osborne, Managing Director of SPERRY RJ Realty, has successfully closed another cannabis dispensary deal with lender financing, marking his fourth such transaction in the last 18 months.

The latest property is strategically located on Highway 200 in Ocala, Florida.

Osborne emphasized the importance of acquiring prime single-tenant properties on major thoroughfares, especially with pending legislation favoring such investments.

“Investing in top-tier dispensaries is a win for investors,” Osborne stated. “With most single-tenant net lease (STNL) properties yielding below 5% returns, it’s challenging to keep pace with inflation. My strategy for investors willing to consider dispensaries is to find ones offering over a 7.5% cap rate with annual rent increases on an absolute triple net basis.”

SPERRY RJ Realty anticipates significant changes in the cannabis industry, particularly with the potential reclassification of cannabis from a Schedule 1 to a Schedule 3 drug. This shift could enhance financing opportunities and attract more investors. However, local zoning laws will still govern where dispensaries can operate.

On November 5, 2024, Florida voters will decide on an amendment permitting adults over 21 to purchase and possess small amounts of cannabis for personal use. The impact of this amendment on the broader market remains to be seen.

 

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Sperry – RJ Realty’s Ron Osborne Reps Buyer In Purchase Of Retail Property In Hallandale

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Ron Osborne, Managing Director/Broker of Sperry – RJ Realty, represented the Buyer, a major investor within the Hallandale Blvd. market, in the purchase of a former used-car dealership located at 3901 W. Hallandale Beach Blvd, in West Park, Florida.

The deal closed  August 19.

While the property is currently a used car dealership, it is a non-conforming use, and the city will not permit the use in the future.

Sperry – RJ Realty was one of several brokerages vying for the listing, however, the ownership decided to move forward with another brokerage due to a personal relationship.

Within a day of his initial meeting with the Seller, Osborne brought in a contract at 95% of list price of $895,000 with a non-contingent, 30-day closing other than clear and marketable title with the full contract price placed in escrow. The transaction was scheldued to close in less than 30 days, however, the only thing that delayed the closing was the seller’s inability to deliver the property with clean title due to several code violations which needed to be resolved before closing.  The Seller was unable to resolve one of the code issues and Osborne was able to persuade his client to purchase the property with the code issue and negotiated a discounted price.

“We always recommend that a seller considers ordering a code, lien and open permit search when they list a property,” explained Osborne. “If the owner has owned the property for many years, we also may recommend doing a title search to ensure clean title can be conveyed.  This way, if there are any issues, they can be addressed before a contract is negotiated.”

Osborne has represented the investor previously. They own the properties that border the subject property on both sides and have plans to redevelop them.

“It is all about knowing the right buyer for a property, and knowing what can be done with it in the future,” added Osborne. “This area has gone through and is continuing to go through major changes.”

Osborne has been working the Broward County Market since 1978 and is a top producer in the Sperry Commercial Global Affiliates (SPERRY).  When thinking of selling, hire the best broker for the job, not the one that you’re friends with.

The property was listed by Gus Martinez of KW Commercial.

 

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Sperry – RJ Realty’s Ron Osborne Reps Buyer In Purchase Of Fort Myers Cannabis Dispensary

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Ron Osborne, Managing Director/Broker of Sperry – RJ Realty, represented the Buyer, GCDC Fort Myers LLC, in the purchase of a retail property located at 2952 Cleveland Ave (State Road 41) in Fort Myers, Florida.

TERPS ACQUISITIONS FM LLC sold the property for $1.5 million.

The acquisition closed May 22.

The property is currently occupied by AYR Wellness, a cannabis dispensary.

“The investor not only gets a strong tenant, renovated properties, top rents and annual rent increases, but also a better than average cap rate,” explained Osborne. “In this case, the return is close to a 7.5% return with the first rent increase in July. The lease is 100% triple net with no landlord responsibility.”

Osborne is confident that the high visibility of the location on Cleveland Ave. will increase in value over the next 10 years. He also believes that with the coming changes in both Florida Law in regard to the proposed amendment that will pass the legalization of recreational use of cannabis as well as the Federal Government’s change in the status of cannabis, the values of these properties will increase dramatically over time.

“They must be in a major MSA with a cap rate over 7.5%+ or approaching it with annual rent increases,” Osborne explained. “With the more normalized interest rates of 7 to 8%, developers of STNL properties are adjusting their offerings prices to meet the buyer’s expectations of being able to purchase a property and obtain a reasonable amount of leverage,” he added. “The days of 4 to 5% cap rates are coming to an end. Developers need to develop in order to stay in business and recognize that as their construction loans are coming due, they will need to meet the market demands.”

The deal marks the investor’s third acquisition of these types of investments in the last year.

The property was listed by Jake Lurie of Mathews Real Estate Investment Services.

 

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Sperry – RJ Realty’s Ron Osborne Reps Buyer In Purchase Of Central Florida Medical Office

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Ron Osborne, Managing Director/Broker of Sperry – RJ Realty, represented the Buyer, GCDC Orlando LLC, in the purchase of a medical office located at 4980 E Irlo Bronson Memorial Highway in St Cloud.

PD ST. CLOUD LLC sold the medical office building for $5.3 million.

The newly constructed build-to-suit property was built for Sanitas Medical Center, which currently occupies the property. The Tenant signed a 10-year lease with over 9 years remaining with an annual increase at the time of the sale.

Sanitas operates 6 other locations in greater Orlando and has 68 medical facilities throughout Florida, Texas, Tennessee, Connecticut, and New Jersey.

Osborne also arranged for the financing of the acquisition with FirstBank Florida. Jeff Goldstein, Vice President, Business Relationship Officer, represented FirstBank Florida in the transaction, with 50% down at an attractive interest rate of about 7%.  Osborne has a long-standing relationship with FirstBank Florida along with other lenders.

Ronald Osborne 500x500“Obtaining financing for a nonresident buyer is extremely difficult without them having a permanent residence in the United States,” stated Osborne. “We have been very successful in helping our client obtain loans from different lenders.”

Osborne stated that the Buyer is still looking for great opportunities to acquire additional assets this year.

“They must be in a major MSA with a cap rate over 7.5%+ or approaching it with annual rent increases,” Osborne explained. “With the more normalized interest rates of 7 to 8%, both developers of STNL properties are adjusting their offerings prices to meet the buyer’s expectations of being able to purchase a property and obtain a reasonable amount of leverage,” he added. “The days of 4 to 5% cap rates are coming to end. Developers need to develop in order to stay in business and recognize that as their construction loans are coming due, they will need to meet the market demands.”

The property was represented by Jeffrey Cicurel with JLL’s Miami office.

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