Tucker Commercial, as Exclusive Advisor, is pleased to present the Searls Light Industrial Campus (SLIC) for sale. This offering represents a rare opportunity to acquire a 27,136 SF light industrial campus with strong in-place income, value-add potential via lease-up of vacant spaces and more efficient expense management, and a compelling break-up exit strategy. The property is currently 44% occupied, with five (5) tenants on NNN leases producing $489,526 in annual revenue, and an in-place NOI of $311,284, representing a 5.66% going in cap rate. All existing tenants have executed five or seven-year lease renewals within the past two years, demonstrating long-term commitment to the property. The leases include annual rent escalations of 2% or 3% and provide renewal options.
SLIC has undergone over $2.5M in capital improvements since 2018, including ADA-compliant path-of-travel upgrades, extensive electrical infrastructure enhancements allowing for up to 1,200 AMPs of power to each unit (switch gear in place), unit demising, and exterior & landscaping improvements. In addition to these ownership-led upgrades, existing tenants have invested significant capital into specialized buildouts tailored to their operations.
The property consists of three buildings across two legal parcels totaling 2.99 acres. The 569 Searls building, an 8,100 SF standalone building on its own .7 acre parcel, is 100% occupied by a multi-state cannabis operator (MSO), which operates the only licensed dispensary in Nevada City and one of only two in Nevada County. In addition to the dispensary, the MSO operates its distribution/processing, extraction, and corporate headquarters out of the 569 building. 569 Searls generates approximately $298,044 in NOI. Given its standalone nature and long-term tenancy, an investor could sell 569 Searls separately, significantly lowering their cost basis on the remaining 545-555 Searls parcel.
The 545-555 Searls buildings total 19,036 SF across 2.29 acres and offer a blend of in-place income, value-add via lease up, and excess land. 545-555 currently houses a Type 7 cannabis extraction tenant leasing 3,845 SF under a long-term lease. This tenant has invested heavily in a highly specialized lab buildout, including a C1D1 volatile extraction booth, lab space, and full backup power generation, creating high renewal probability. The remaining 15,192 SF of vacant space, spread across five (5) suites, presents a lease-up opportunity in a severely supply-constrained industrial market. In addition, the 545-555 parcel benefits from having low building coverage (19%), and offers an opportunity for an investor to develop another building on the excess land or monetize it via fenced yard space (subject to approval by the City of Nevada City). Previously, a two story, 8,000 SF building was approved on the excess land.
Among the available spaces on the 545-555 parcel, 555 Searls #4 (3,185 SF) was previously built out for a cannabis beverage manufacturer, making it well-suited for a commercial kitchen or lab space, featuring heavy power, floor drains, and curved cove base. 545 Suite 2 (4,500 SF) is partially built out with rough framing and rough electrical completed, allowing an investor to either complete the buildout or return the space to a high-percentage warehouse configuration. The remaining suites are in shell condition, providing flexibility for a range of industrial users.
SLIC is zoned for light industrial use, allowing for traditional manufacturing, distribution uses, as well as a variety of cannabis-related operations, including cultivation, processing, extraction, distribution, and retail sales. The significant power and accessibility upgrades make the site attractive to both cannabis and traditional industrial tenants, positioning the property for long-term demand and NOI growth.
This two-parcel structure provides multiple exit strategies, allowing an investor to sell the stabilized 569 Searls parcel, while holding and leasing up 545-555 Searls at a significantly lower cost basis. Alternatively, a buyer could retain both parcels and enjoy the strong in-place cash flow and lease-up upside in a high-barrier-to-entry market. Please sign the digital confidential agreement to gain access to the rent roll/financials.
Status | Type | Subtype | County |
|---|---|---|---|
For Sale | Industrial | Cannabis, Light Industrial, Warehouse | Nevada County |
TJT Realty Inc., DBA Tucker Commercial ("Broker") has been retained by the subject property's ownership ("Owner") in connection with a possible sale of 545 Searls Ave, Nevada City, CA 95959 (the "Property"). Broker, on behalf of Owner, has agreed to make available to the undersigned (the "Prospect") certain "Confidential Information" (hereinafter defined) provided Prospect agrees to all of the terms and provisions of this agreement (the "Agreement"). Prospect desires to receive Confidential Information in connection with the Property, and in consideration of same, the receipt and sufficiency of which are acknowledged, Prospect hereby agrees with Broker and Owner as follows:
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