San Francisco Retail for Sale - Southern City
5232-34 Mission Street is a mutli-tenant, NNN leased retail property offered at $4,995,000, delivering a 12.16% in-place cap rate and $607,500 in annual NOI. The entirety of the first floor (5232) is leased to licensed dispensary - Connected Cannabis Co., one of California's most respected and operationally proven cannabis operators, with a perfect on-time payment record since inception and zero missed payments. This is a rare opportunity to acquire a performing NNN investment in one of California's most supply-constrained retail markets, with a tenant whose financial strength and motivation to maintain this location sets it apart from virtually every other cannabis leased investment available in the state.
The lease generates $50,625 per month base rent plus NNN through March 31, 2034, with two 5-year renewal options extending the potential term through 2044. Rent escalates 12.5% every five years from the 2019 commencement date. The next escalation is April 2029, growing NOI to $683,438 — a 13.68% cap rate with no additional investment. By 2039 the cap rate reaches 17.32%. All escalation years are scheduled lease events, not projections.
The 4,472 SF building has two floors. The 2,386 SF ground floor is fully occupied by Connected Cannabis under the NNN lease. The 2,086 SF second floor is vacant and entirely unpriced in this offering, a buyer acquires the upside at no incremental cost. At $2.50/SF/month NNN, the second floor adds $62,580/year in NOI. No cannabis use or additional licensing is required; the space suits professional services, creative studios, or small office users.
The location is one of a finite set of protected cannabis retail addresses in San Francisco. The city's moratorium on new cannabis retail license applications runs through December 31, 2027, meaning no new storefront permit can be issued. San Francisco has also suspended its local cannabis business tax through 2034, directly improving Connected's operating margins at this location. The combination of a financially strong tenant, a protected license, a suspended local tax, and a high-transit location represents the most defensible cannabis NNN profile available in California today.
Available individually at $4,995,000 or as part of a three-property Connected Cannabis NNN portfolio with two Sacramento industrial cultivation facilities, totaling $20,443,210 for all 3 properties, at a blended 9.0% cap rate. Contact WeCann today to get more information on this asset and/or the entire portfolio.
All information is provided for general informational and marketing purposes only and is believed to be from reliable sources; however, no warranty is made as to accuracy or completeness. All data is subject to change. Prospective purchasers are solely responsible for conducting their own independent due diligence prior to making any investment decision.
