Zoned Properties acquires Chicago dispensary property for $1.6M; 15-year net lease yields ~16.5% cap rate

Zoned Properties, Inc.

Purchased Ashland Avenue Property in Chicago for ~$1.6M inclusive of closing costs; leased to Justice Cannabis Co.’s BLOC Dispensaries.
15-year absolute net lease with four 5-year renewal options; base rent escalates 3% annually.
Straight-lined annual base rent of ~$265,000; cap rate of ~16.5% over the lease term.
Tenant’s operating partner commits up to $1M for renovation and construction improvements.
Illinois dispensary sales exceeded $1.5B in FY23; property located 1.5 miles from White Sox stadium.

Key facts

Extracted from this filing and checked against the source text.

Material Agreements SEC 8-K Item 1.01/1.02 confidence 0.95

Zoned Properties, Inc. entered into Assignment and Assumption Agreement with Keystone Ventures, LLC valued at Assignment of rights to purchase Ashland Avenue Property for $1,250,000 (effective 2024-01-19).

Action: entry
Agreement: asset purchase
Counterparty: Keystone Ventures, LLC
Value: Assignment of rights to purchase Ashland Avenue Property for $1,250,000
Effective: 2024-01-19

Exact text from the filing

On January 19, 2024, ZP Holdings and Keystone entered into that certain Assignment and Assumption Agreement, dated as of January 19, 2024, by and between Keystone and ZP Holdings (the “Assignment Agreement”).

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Material Agreements SEC 8-K Item 1.01/1.02 confidence 0.95

Zoned Properties, Inc. entered into Licensed Cannabis Facility Absolute Net Lease Agreement with JG IL LLC valued at 15-year lease with four 5-year renewal options; base rent starting at $9,166 per month (effective 2024-01-19).

Action: entry
Agreement: lease
Counterparty: JG IL LLC
Value: 15-year lease with four 5-year renewal options; base rent starting at $9,166 per month
Effective: 2024-01-19

Exact text from the filing

On January 18, 2024, ZP Holdings entered into a Licensed Cannabis Facility Absolute Net Lease Agreement (the “Justice Grown Lease”), with a commencement date of January 19, 2024, by and between ZP Holdings, as landlord, and JG IL LLC (“Justice Grown”), as tenant.

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Material Agreements SEC 8-K Item 1.01/1.02 confidence 0.95

Zoned Properties, Inc. entered into Agreement Regarding Purchase and Sale Contract with Keystone Ventures, LLC valued at Purchase price of $1,250,000 (effective 2023-12-15).

Action: entry
Agreement: asset purchase
Counterparty: Keystone Ventures, LLC
Value: Purchase price of $1,250,000
Effective: 2023-12-15

Exact text from the filing

On December 15, 2023, ZP RE Holdings, LLC (“ZP Holdings”), a wholly owned subsidiary of Zoned Properties, Inc. (the “Company”), entered into an Agreement Regarding Purchase and Sale Contract (the “Agreement”), effective as of December 15, 2023, by and between Keystone Ventures, LLC (“Keystone”) as assignor and ZP Holdings as assignee.

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Zoned Properties, Inc. filing history →

Source: SEC EDGAR

accession 0001213900-24-005078

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