Cannabis Cultivating & Processing
For Sale
Contact for pricing
Pending
520 Hammontree Dr, Morenci, MI 49256
Two-tenant, free-standing cannabis facility with new 10-year leases.
Property Size27,000 SF
Days on Market871
Property Features for 520 Hammontree Dr
General Information
Standard status
Pending
Size
27,000 SF
Class
A
Property subtype
Industrial
Occupancy
100%
Lease Type
Absolute Net
Investment Type
Sale/Leaseback
Net Operating Income
$275,000
Building Details
Year Built
2018
Tenancy
Multi
Listing Agency:
Fortis Net Lease
Listed By:
Marvin DeLaura · License #01859235
Source:
Crexi
Added: Apr 2, 2024
Changed: Aug 17
Last Checked: Aug 19 at 5:16AM
Displayed information is deemed reliable but is not guaranteed and should be independently verified. All listing content including descriptions, pricing, images are the copyrighted material of Fortis Net Lease
Investment Insights
Based on property information with market context.
This is a two-tenant, free-standing cannabis cultivating, large-scale extraction, and processing facility. The property is located in Morenci, Michigan, in Lenawee County, near the Ohio border. At the close of escrow, both tenants will sign new 10-year leases expiring in 2034. The NNN leases require zero landlord responsibilities and feature 2.0% annual increases. The landlord is responsible for roof and structure, while the tenants are responsible for all other expenses including the parking lot, HVAC, property taxes, and insurance. The property is 27,000 square feet. Morenci offers a welcoming community and a blend of rural beauty. The city features a mix of residential neighborhoods, parks, and local businesses, creating a tight-knit community feel. Residents and visitors alike can explore the town's history through its historic architecture, including well-preserved buildings that reflect the area's heritage. The city's parks provide recreational spaces for outdoor activities and gatherings, contributing to the overall quality of life. The city embraces its roots while embracing modern amenities, making it a delightful place to call home or visit for those seeking a peaceful and scenic escape in the heart of the Midwest. This property is an ideal opportunity for an investor to purchase a passive income real estate asset with minimal responsibilities.
Key Highlights
- Two tenants with brand new 10‑year NNN leases expiring in 2034, providing long‑term passive income.
- Cannabis Cultivating large scale extraction and processing facility.
- NNN leases require zero landlord responsibilities except for roof and structure, ensuring minimal management effort.
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
$248,750
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
9.05%
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%
$4,975,000
$5.0M
Cap Rate 7%
$3,553,571
$3.6M
Cap Rate 9%
$2,763,889
$2.8M
Market Conditions
NOI Build-Up for 27,000 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
$395.3K $14.64/SF
− Vacancy
−$39.9K −$1.48/SF
EGI
$355.4K $13.16/SF
− OpEx
−$106.6K −$3.95/SF
NOI
$248.7K $9.21/SF
Area
Lenawee County, MI
Vacancy
10.10%
Lease Rate
$14.64 /SF/Yr
Expense Ratio
30.00%
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%
$4,975,000
Cap Rate 7%
$3,553,571
Cap Rate 9%
$2,763,889
Alternative Uses
Best Use
Industrial
$3.55M
$3.11M – $4.15M
NOI $248,750 @ 7.0% cap · market cap 9.05%
Second Best
—
—
no second resolved use
Theoretical Best
Multifamily LT 5
$334.99M
$293.11M – $390.82M
NOI $23,448,979 @ 7.0% cap · market cap 852.69%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
1
Businesses Nearby
Explore this area
Business Placement
Demographics for 49256, MI
3,909
Population
1,608
Households
2.4
Avg Household Size
40
Median Age
12%
College-Educated
88%
High-School Grad
60.5 sq mi
ZIP Area
65
Density / Sq Mi
$60,982
Median Household Income
$32,056
Median Earnings
$778
Median Rent
$112,800
Median Home Value
Market
Vacancy Rate% for Industrial in Midwest region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Cannabis property - Two-tenant, free-standing cannabis facility with new 10-year leases.
Where is this cannabis property located?
The property is located at 520 Hammontree Dr Morenci, MI.
What is the asking price?
The asking price for this property is $2,750,000.
What are key features of this property?
This property features: Two tenants with brand new 10‑year NNN leases expiring in 2034, providing long‑term passive income.; Cannabis Cultivating large scale extraction and processing facility.; NNN leases require zero landlord responsibilities except for roof and structure, ensuring minimal management effort.
