Listing Detail

360 South Watt Avenue is a fully stabilized, cannabis-permitted industrial investment in Sacramento's Power Inn Submarket, the largest and tightest industrial submarket in the region. The property carries a City of Sacramento-approved Conditional Use Permit for cannabis distribution and delivery, one of only three such entitlements currently attached to a for-sale property in the entire Sacramento market.

The building totals 9,600 SF gross with 8,748 rentable square feet across eight fully leased suites, sitting on a 40,119 SF lot (0.92 acres). Built in 1994 and zoned M-1, the property offers 20-foot clear height, four drive-in loading doors, 400A/3-phase power, and a wet sprinkler system. Roughly $1,200,000 in verified tenant improvements went into the cannabis buildout: controlled-access suite demising, security infrastructure, and a shared common area built for social equity tenant use.

Every lease is triple net, with 3% fixed annual escalations and personal guaranties from all eight tenants. Lease expirations are staggered from 2026 through 2029, so there's no single-year rollover risk. The property is priced at $2,500,000, or $285.78 per rentable square foot, an 8.43% current cap rate that grows to 11.02% by Year 10 through the escalations already built into the leases. No lease-up risk. No management burden.