Building Details

Building Size 7,500 SF

Year Built 1971

Listing Agency: Marcus & Millichap - Boston

Listed By: Harrison Klein · License #License(s): MA: 9580881 Show Phone

Source: Marcusmillichap

Added: Jul 29 Changed: Sep 10 Last Checked: Sep 14 at 5:18AM

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Investment Insights

Based on property information with market context.

Marcus & Millichap is pleased to present 47 Milford Street in Mendon, Massachusetts. The property is home to Joint Operations, an established cannabis dispensary that opened in 2023, and is being offered as a sale-leaseback subject to a ten-year leaseback of the dispensary space.

The triple-net lease is expected to include annual rent escalations and multiple extension options, with new lease terms negotiable directly with the seller/tenant as part of the sale. The dispensary includes 2,544 SF of air-conditioned space built out with a cannabis vault, retail area, staff lounge, and high-end security systems. In addition to the dispensary space, the buyer will have the ability to lease or utilize the rear portion of the building, consisting of approximately 5,000 square feet of open warehouse space with 6 overhead doors.

The 4.54-acre site is located on busy Route 16, a major thoroughfare connecting Mendon with adjoining communities including Milford and Hopedale. The location offers strong visibility and traffic, and the property is 1.5 miles from Milford Regional Medical Center and 5 miles from Interstate 495. The rear space can be offered with prominent signage along Route 16 and significant on-site parking. The property was built in 1971.

Key Highlights

• Dispensery sale‑leaseback subject to a ten‑year leaseback of dispensary space
• 2,544 SF air‑conditioned dispensary buildout with cannabis vault, retail, staff lounge, and high‑end security
• Rear warehouse area of about 5,000 SF with 6 overhead doors

Financial Insights

Estimated NOI and Cap Rate

NOI = area × lease_rate × (100 − vacancy) / 100 × (1 − expense_ratio). Net Operating Income — what the owner takes home each year before mortgage payments and income tax. Effective rent (asking rent minus vacancy losses) minus operating costs (taxes, insurance, maintenance, management).

NOI / Yr

$54,506

Cap rate = NOI / list price × 100. Capitalization rate — annual return on a fully cash purchase, before financing. NOI divided by price. Higher means more income per dollar invested, but usually also more risk or older condition. 5–8% is typical for stabilized commercial property; double digits often signal distressed deals.

Cap Rate

3.11%

Suggested Prices Based on Cap Rates Cap rates vary significantly by property type, market, and asset quality. Typical U.S. stable-market ranges: Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+) Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand) Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically) Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher) Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk) Self-Storage — 5.5% to 7.5% Medical Office — 6.0% to 7.5% Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term Rules of thumb: Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%). Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C. Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI. Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.

Cap Rate 5%

$1,090,120 $1.1M

Cap Rate 7%

$778,657 $778.7K

Cap Rate 9%

$605,622 $605.6K

Market Conditions

NOI Build-Up for 4,956 SF Vacancy — income lost from leasable area expected to sit empty during the year, subtracted from gross rent. EGI (Effective Gross Income) — gross rent minus vacancy losses, the realistic income before paying operating costs. OpEx (Operating Expenses) — recurring costs to operate the property (property tax, insurance, utilities, maintenance, management); excludes financing and capital improvements. NOI (Net Operating Income) — income a property generates after operating costs but before financing and taxes.

Gross rent

$89.2K $18.00/SF

− Vacancy

−$5.4K −$1.08/SF

EGI

$83.9K $16.92/SF

− OpEx

−$29.3K −$5.92/SF

NOI

$54.5K $11.00/SF

Area

Worcester County, MA

Vacancy

6.00%

Lease Rate

$18.00 /SF/Yr

Expense Ratio

35.00%

Simulate Cap Rate and NOI

Suggested Prices Based on Cap Rates Cap rates vary significantly by property type, market, and asset quality. Typical U.S. stable-market ranges: Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+) Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand) Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically) Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher) Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk) Self-Storage — 5.5% to 7.5% Medical Office — 6.0% to 7.5% Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term Rules of thumb: Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%). Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C. Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI. Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.

Cap Rate 5%

$1,090,120

Cap Rate 7%

$778,657

Cap Rate 9%

$605,622

Alternative Uses

Best Use

Flex RnD

$778.7K

$681.3K – $908.4K (±1% cap)

NOI $54,506 @ 7.0% cap · market cap 3.11%

Second Best

Industrial

$646.3K

$565.5K – $754.0K (±1% cap)

NOI $45,242 @ 7.0% cap · market cap 2.59%

Theoretical Best

Office A

$1.69M

$1.48M – $1.97M (±1% cap)

NOI $118,468 @ 7.0% cap · market cap 6.77%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

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Open Analytics

Current Use

Noble Manna, Inc. (Bike/Boat/Book/etc) Store Crossroads Linen Company (Bike/Boat/Book/etc) Store Joint Operations - Mendon ... (Bike/Boat/Book/etc) Store

Suggested Use

Top Pick Building Supply Restaurant Big Box & Wholesale Store Dental Office Law Firm Real Estate Agency

Score = modeled unmet demand for each use within ~1 mi (higher = bigger opportunity). Zoning and permitted uses should be independently verified with local authorities.

Location Intelligence

Trade Area within ½ mile

73

Businesses Nearby

Explore this area Business Placement

Demographics for 01756, MA

6,228

Population

2,226

Households

2.8

Avg Household Size

43

Median Age

54%

College-Educated

98%

High-School Grad

17.8 sq mi

ZIP Area

350

Density / Sq Mi

$129,837

Median Household Income

$53,610

Median Earnings

$1,947

Median Rent

$605,500

Median Home Value

Market

Vacancy Rate% for Industrial in Northeast region

5.4% 2019

4.6% 2020

3.2% 2021

3.3% 2022

5.3% 2023

6.6% 2024

7.6% 2025

Questions? Ask Rey

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What type of property is this? Where is this cannabis properties located? What is the asking price? Find similar properties What are key features of this property?

Frequently Asked Questions

What type of property is this?

Cannabis property - Cannabis dispensary built out with air-conditioned vault space and a rear warehouse area with six overhead doors on Route 16.

Where is this cannabis property located?

The property is located at 47 Milford St Mendon, MA.

What is the asking price?

The asking price for this property is $1,750,000.

What are key features of this property?

This property features: Dispensery sale‑leaseback subject to a ten‑year leaseback of dispensary space; 2,544 SF air‑conditioned dispensary buildout with cannabis vault, retail, staff lounge, and high‑end security; Rear warehouse area of about 5,000 SF with 6 overhead doors