Property Intelligence

Located in San Diego, California 92121, this approximately 12,000-square-foot freestanding industrial facility presents a rare cannabis manufacturing real estate opportunity in the Miramar industrial corridor. Situated on approximately 0.68 acres, the property combines an established cannabis production facility Conditional Use Permit (CUP), specialized manufacturing infrastructure, and existing rental income.

One of only 40 cannabis production facilities permitted citywide under San Diego's municipal framework, the property offers a compelling combination of regulatory scarcity, purpose-built improvements, and future owner-user flexibility.

Offered at $5,950,000, the property is marketed at an advertised 7.5% capitalization rate, supported by approximately $446,640 in annual scheduled rental income. An existing triple-net (NNN) tenant is reportedly under lease through August 31, 2028, creating an opportunity for investors to collect income while evaluating future owner occupancy.

The facility is located within the Mira Mesa Community Plan area, with IL-2-1 industrial zoning and convenient access to Interstate 805, Interstate 15, and State Route 52.

Cannabis Zoning & Licensing Intelligence

The property's established cannabis production CUP, within a citywide limit of just 40 permitted production facilities, is its defining competitive advantage.

The City of San Diego limits cannabis production facilities to 40 citywide, creating a supply-constrained regulatory environment for properties authorized to accommodate these specialized operations.

The property benefits from an existing municipal Conditional Use Permit advertised as authorizing:

• Cannabis manufacturing and processing

• Cannabis packaging

• Cannabis storage

• Cannabis distribution

The broker represents that the CUP runs with the land and is transferable with the real estate, potentially offering a significant advantage to qualified operators seeking an established production location rather than pursuing new discretionary land-use approvals.

City records independently document cannabis manufacturing authorization at this location, with the current CUP expiration listed as December 19, 2028.

The CUP does not authorize cannabis cultivation or retail dispensary operations. Its approved activities, transfer provisions, operating conditions, and renewal requirements should be confirmed directly with the City of San Diego.

Importantly, the municipal CUP is separate from California's state cannabis licensing framework. A purchaser or future operator must independently maintain or obtain the applicable state licenses and operating authorizations.

Cannabis Production Infrastructure & Facility Improvements

The facility's extensive production-oriented buildout is a distinguishing feature, offering infrastructure designed to support sophisticated manufacturing and processing operations.

The freestanding industrial building contains approximately 11,820 square feet of documented building area, marketed as approximately 12,000 square feet, with roughly 80% of the facility climate-controlled.

Its existing infrastructure includes commercial kitchen equipment, specialized plumbing, refrigeration, loading facilities, and substantial electrical and mechanical improvements.

Commercial Kitchen & Processing Infrastructure

• Two walk-in refrigerators, each approximately 14 × 20 feet, including one with double doors wide enough to accommodate pallet entry.

• One walk-in freezer measuring approximately 8 × 20 feet.

• Two stainless steel exhaust hoods totaling approximately 50 linear feet, equipped with fire suppression systems.

• Stainless steel three-compartment and single-compartment sinks.

• Stainless steel pot rack, wire shelving, and commercial kitchen preparation infrastructure.

• Stainless steel dish machine table with integrated scrap sink.

• Dedicated plumbing for a dishwashing station.

• Ice machine and water-softening system.

• Approximately 1,200-gallon grease interceptor supporting commercial food-processing requirements.

• Five office desks with hutches.

These improvements may be particularly relevant to appropriately licensed manufacturers evaluating cannabis-infused product production, edible manufacturing, packaging, and related processing activities, subject to the applicable approvals and equipment suitability.

Industrial Building & Site Features

• Approximately 18-foot clear ceiling height.

• One dock-high loading door and two grade-level loading doors.

• Fenced and gated industrial yard.

• Additional attached storage area at the rear of the building.

• Approximately 80% climate-controlled building area.

• Owned and fully paid-off rooftop solar array.

• Roof re-coated in 2024, with a reported 10-year coating warranty.

• Three air-conditioning units reportedly less than two years old.

• Parking lot repaired and resealed in 2025.

• Electrical and plumbing systems reportedly installed or substantially upgraded during a 2015 building renovation.

The owned rooftop solar installation is particularly noteworthy for energy-intensive manufacturing operations, potentially reducing ongoing electricity expenses compared with facilities dependent entirely on purchased utility power.

The property's existing commercial kitchen, cold storage, loading infrastructure, and climate-controlled production areas may also reduce the scope of additional improvements required by certain operators, depending on their specific production processes and licensing requirements.

Prospective purchasers should verify the condition, ownership, capacity, warranties, and transferability of all specialized improvements and equipment included in the offering.

Cannabis Market & Investment Perspective

At an advertised asking price of $5,950,000, the property is positioned as a specialized cannabis production investment with both near-term income and potential long-term owner-user value.

Advertised Investment Highlights

• Asking Price: $5,950,000

• Advertised Capitalization Rate: 7.5%

• Annual Scheduled Rental Income: $446,640

• Price Per Square Foot: Approximately $496 based on the marketed 12,000-square-foot building size

• Lease Structure: Triple Net (NNN)

• Reported Lease Expiration: August 31, 2028

• Land Area: Approximately 0.68 acres

• Zoning: IL-2-1 Industrial

• Cannabis Production CUP Expiration: December 19, 2028

The existing NNN tenancy provides an income-producing component while the remaining lease term may create an opportunity for future owner occupancy, subject to the tenant's contractual rights and the applicable cannabis regulatory requirements.

Collect rent now. Evaluate owner occupancy later.

This investment structure may appeal to cannabis manufacturers, vertically integrated operators, and specialized real estate investors seeking an established production facility in a tightly regulated municipal market.

San Diego's 40-facility production limit provides an important scarcity consideration. Unlike conventional industrial properties that may require new cannabis-related approvals, this facility already has documented municipal production authorization.

The existing infrastructure may further distinguish the property from unimproved industrial inventory. Commercial kitchen systems, cold storage, climate control, loading facilities, and owned solar improvements represent substantial specialized components that would otherwise require separate investment.

However, prospective purchasers should evaluate the complete lease, tenant financial condition, actual operating expenses, specialized equipment condition, CUP requirements, and the feasibility of future owner occupancy.

The August 2028 lease expiration and December 2028 CUP expiration are especially important considerations when assessing the property's investment horizon and continued cannabis production eligibility.

The advertised 7.5% capitalization rate should also be reconciled against verified net operating income and the executed lease. The stated $446,640 figure is scheduled rental income and should not automatically be treated as verified NOI.

GreenZones Intelligence Score: 95/100

GreenZones' editorial assessment reflects the property's documented cannabis production authorization, citywide 40-facility regulatory limit, extensive manufacturing infrastructure, established Miramar industrial location, and existing income-producing tenancy.

The combination of an established cannabis production CUP, specialized commercial kitchen and processing improvements, owned rooftop solar, and a future owner-user opportunity distinguishes this property from conventional industrial investments and speculative cannabis conversion opportunities.

The score also considers the approaching 2028 CUP and lease expirations, which warrant careful due diligence regarding renewal requirements, continued operating authorization, and future occupancy.

The score represents an informed assessment of cannabis suitability and investment characteristics, not an appraisal or projection of investment returns.

Alta Tera | Listing Representatives

Maha Odeh-Arnold

Phone: (858) 295-5596

Email: maha@thealtateam.com

Amir Hamideh

Phone: (760) 845-0104

Email: amirhamideh@hamideh-re.com

Brokerage Website: https://www.altateraproperties.com

For current availability, pricing, property details, or to request the offering memorandum, please contact the authorized listing representatives directly. All property inquiries and transaction discussions are handled by the listing brokerage.