Sacramento Industrial for Sale - South Sacramento
5860 88th St, Sacramento, CA 95828 is a 41,600 SF single-tenant NNN leased cannabis cultivation facility offered at $12,150,000, representing an 8.2% in-place cap rate and $992,256 in annual net operating income. The property is leased to Connected Cannabis Co. under a Triple Net structure with a corporate guaranty from Connected International Inc., zero late payments since inception, and 12.5% rent escalations every five years — growing the in-place cap rate to 9.2% in 2029 and 10.4% at the first renewal in 2034. Connected Cannabis Co. is one of California's most respected cannabis operators. Founded in Sacramento in 2009, the company is fully vertically integrated across cultivation, production, distribution, and retail in California, Arizona, and Florida. It distributes to 175+ dispensaries statewide, has raised $55M+ in institutional capital, and reported $9.5M in 2025 EBITDA with approximately $15M projected for 2026.
The property sits on a 2.34-acre M-2S parcel in Sacramento's Power Inn corridor, the city's primary cannabis industrial zone, with direct access to I-5 and US-50. The facility features heavy-power infrastructure and a large secured yard that would support a broad range of conventional industrial tenants — a meaningful consideration given that Sacramento non-cannabis industrial NNN assets have traded at 5.5% to 6.5% cap rates, and this building's upgraded infrastructure supports a $1.25/SF conventional rent floor. A cannabis cultivation license is address-specific. Connected cannot relocate without restarting a multi-year licensing process from scratch. Sacramento is not just a lease market for this tenant — it is where the company was founded, and where its supply chain, brand, and retail relationships are rooted. The structural motivation to stay is unusually strong.
Offered individually and as part of a three-property Connected Cannabis NNN portfolio marketed exclusively by WeCann, alongside 5232-5234 Mission St, San Francisco and 8111 37th Ave, Sacramento. All three leases are co-terminus, expiring March 31, 2034, with identical renewal and escalation structures.