1298 Arbogast Rd 21,400 SF Industrial Building Union City, MI 49094 $1,900,000 ($88.79/SF) 12.96% Cap Rate

Turnkey licensed cannabis cultivation farm on approximately 23 acres in Union City, Branch County, with roughly 20 acres in active outdoor cultivation. Improvements total approximately 21,400 SF across three enclosed buildings, including roughly 17,000 SF of warehouse dedicated to drying and post-harvest processing (trimming and sorting), plus a two-story wing built out as office, kitchen, storage and conference space. A 5,000 SF detached barn built in 2009 is leased to a biomass storage tenant, and two utility barns support equipment and shop use.
The site holds eight Class C cultivation licenses - seven Medical and one Adult Use - and the operation is running today. Three licenses are renewed through August 2027. Prior processor licenses were voluntarily closed and the Seller reports the site can readily be re-approved. Union City's Marihuana Zoning Ordinance permits growers, processors, safety compliance facilities and secure transporters by special use permit.
Offered at $1,900,000 - $88.79/SF on the buildings and $82,609 per acre, below the $100-$180/SF range that turnkey Michigan grows command. The 13% return shown is calculated on $246,237 of 2025 seller-reported operating NOI divided by the asking price; it reflects the results of the operating business rather than a stabilized real estate net operating income. In-place rental income of approximately $80,000 per year comes from the detached barn tenant.
All on-site equipment is owned free of liens. Up to $700,000 of product inventory is negotiable and can convey separately from the real estate, subject to closing timing and CRA approval. The current owner is prepared to continue running operations after the sale, so a buyer can retain the operator or take over as an owner-user.
License transfer is subject to Michigan CRA approval. Financial statements, operating expense detail, insurance, the itemized equipment schedule, well capacity documentation and lease documentation are available to qualified purchasers upon execution of a confidentiality agreement. Full Offering Memorandum attached.
Contact Jeremy Slowinski, Industrial Market Director, at 708-670-2032 or Lane Moser, Senior Broker, at 260-615-9248.