Alta Tera is pleased to present an exceptional cannabis commercial real estate investment opportunity—a permitted, purpose-built cannabis manufacturing and distribution facility strategically located in San Diego's Miramar industrial corridor, California 92121.

Offered at $5,950,000, this approximately 12,000-square-foot freestanding industrial property combines income-producing real estate, a valuable Conditional Use Permit (CUP) for cannabis manufacturing, packaging, storage, and distribution, extensive production infrastructure, and an owned, fully paid-off rooftop solar system.

With the City of San Diego limiting cannabis production facilities to just 40 permitted locations citywide, the property's existing municipal authorization represents a significant competitive advantage in a highly regulated, supply-constrained market.

The facility features a comprehensive production-oriented buildout, including commercial kitchen infrastructure, walk-in refrigeration and freezer storage, industrial exhaust systems, specialized plumbing, and approximately 80% climate-controlled space. These improvements provide substantial operational infrastructure for qualified cannabis manufacturers and distributors.

The property is currently leased under a triple-net (NNN) agreement through August 31, 2028, generating approximately $446,640 in scheduled annual rental income, with an advertised 7.5% capitalization rate. This structure offers investors immediate income while preserving the potential for future owner occupancy, subject to existing lease obligations and applicable regulatory approvals.

For cannabis manufacturers, vertically integrated operators, strategic acquirers, and commercial real estate investors, this offering presents a distinctive opportunity to acquire specialized industrial real estate with established cannabis production entitlements, extensive facility improvements, and long-term positioning within one of Southern California's most tightly regulated cannabis markets.

One of the property's most significant competitive advantages is its existing City of San Diego Cannabis Production Facility Conditional Use Permit (CUP), within a municipal framework limiting cannabis production facilities to just 40 locations citywide.

Unlike the acquisition of an operating cannabis business, this offering includes income-producing commercial real estate with an established municipal cannabis production entitlement. The brokerage represents that the CUP runs with the land and is transferable, subject to applicable city requirements.

Cannabis Production Facility CUP

The existing CUP is advertised as authorizing:

• Cannabis Manufacturing
• Cannabis Processing
• Cannabis Packaging
• Cannabis Product Storage
• Cannabis Distribution

The facility's specialized improvements, including commercial kitchen infrastructure, industrial ventilation, cold storage, and dedicated processing areas, may support a range of manufacturing activities, subject to applicable state licensing and permit conditions.

The CUP does not authorize cannabis cultivation or retail dispensary operations.

Regulatory Scarcity & Competitive Advantage

San Diego limits cannabis production facilities to 40 citywide, creating a significant regulatory barrier for operators seeking suitable manufacturing and distribution locations.

The property's existing authorization offers several potential advantages:

• Established Municipal Cannabis Production Entitlement
• Advertised Transferability With the Real Estate
• Reduced Uncertainty Compared With Pursuing a New CUP
• Purpose-Built Manufacturing Infrastructure
• Existing Industrial Zoning (IL-2-1)
• Strategic Miramar Industrial Location
• Potential Future Owner-User Occupancy

The city's facility register identifies the CUP expiration as December 19, 2028. Purchasers should verify the permit's authorized activities, transfer conditions, renewal requirements, and continued validity directly with the City of San Diego.

• Important: The municipal CUP is not a California state cannabis license. No Type 7 Manufacturing License, Type 11 Distribution License, or other state-issued cannabis operating license is represented as included in this real estate acquisition. Future operators must independently satisfy applicable state licensing requirements.

Unlike vacant industrial properties requiring new cannabis entitlements and substantial facility improvements, this offering combines existing rental income, an established cannabis production permit, and specialized manufacturing infrastructure.

Current investment characteristics and future opportunities include:

• $446,640 in Scheduled Annual Rental Income
• Advertised 7.5% Capitalization Rate
• Existing Triple-Net (NNN) Tenant Through August 31, 2028
• Future Owner-User Occupancy Potential Following Lease Expiration, Subject to Tenant Rights
• Transferable Cannabis Production CUP Advertised as Running With the Land
• One of Only 40 Cannabis Production Facilities Permitted Citywide
• Cannabis Manufacturing & Processing Opportunities
• Cannabis Packaging & Product Storage
• Cannabis Distribution & Logistics
• Commercial Kitchen & Edible Manufacturing Infrastructure
• Cold Storage & Climate-Controlled Production Areas
• Owned Rooftop Solar System With Potential Operating-Cost Savings
• Potential Contract Manufacturing & Co-Packing Applications, Subject to State Licensing and Facility Approvals
• Strategic Miramar Industrial Location Serving the Greater San Diego Market

This combination of contractual income, regulatory scarcity, and specialized production infrastructure offers investors immediate income with potential future operational flexibility and long-term real estate value.

This specialized cannabis production facility offers significant potential for future operational flexibility, manufacturing expansion, and long-term investment value.

Potential opportunities for qualified operators include:

• Future Owner-User Occupancy Following the Existing NNN Lease Expiration in August 2028
• Expanded Cannabis Manufacturing & Processing Operations
• Contract Manufacturing & White-Label Production
• Cannabis Edibles & Infused Product Manufacturing
• Commercial Kitchen & Food-Processing Applications
• Cannabis Packaging & Finished Goods Production
• Cannabis Storage, Distribution & Logistics
• Increased Production Capacity & Facility Utilization
• Additional Manufacturing Shifts & Production Lines
• Vertical Integration for Established Cannabis Operators
• Operational Cost Optimization Through the Owned Rooftop Solar Array
• Long-Term Cannabis Real Estate Investment Within San Diego's 40-Facility Production Limit

With substantial manufacturing infrastructure already in place and an established municipal cannabis production CUP, the property offers qualified operators a potential pathway to expand production without starting from an unimproved industrial building.

Future operations remain subject to applicable state licensing, municipal permit conditions, tenant rights, and regulatory approvals.

This acquisition offers investors and qualified cannabis operators the opportunity to secure income-producing industrial real estate with an established cannabis production entitlement and substantial specialized infrastructure in one of Southern California's most supply-constrained regulatory markets.

Established Infrastructure & Regulatory Value

Asking Price: $5,950,000

Annual Scheduled Rental Income: $446,640

Advertised Capitalization Rate: 7.5%

Beyond the underlying real estate, the property offers several important advantages that could be costly and time-consuming to replicate:

• Regulatory Scarcity: Existing cannabis production CUP within San Diego's 40-facility citywide limit
• Established Entitlement: Municipal authorization advertised as transferable with the real estate
• Specialized Facility Buildout: Commercial production kitchen, industrial ventilation, refrigeration, and processing infrastructure
• Energy Infrastructure: Owned, fully paid-off rooftop solar array
• Existing Improvements: Climate-controlled production areas, loading facilities, secured yard, and upgraded building systems
• Contractual Income: Existing NNN tenancy reportedly extending through August 2028
• Future Flexibility: Potential owner-user occupancy following lease expiration, subject to tenant rights and regulatory requirements

The Advantage of an Established Cannabis Production Facility

Acquiring an existing permitted facility may reduce the time, expense, and uncertainty associated with identifying a suitable industrial property, pursuing municipal cannabis approvals, and installing specialized manufacturing infrastructure.

For investors, the property offers existing contractual income. For qualified cannabis operators, it presents the potential to secure a specialized production facility with substantial infrastructure already in place.

The combination of regulatory scarcity, physical improvements, and future occupancy flexibility creates a differentiated investment opportunity that conventional industrial properties may not offer.

The property's actual replacement cost, equipment value, permit transfer conditions, and future operating suitability should be independently verified. The advertised capitalization rate is subject to confirmation of net operating income.