13310 Little Morongo Rd - Building 1 41,000 SF Industrial Condo Unit Offered at $9,988,000 in Desert Hot Springs, CA 92240

MOTIVATED SELLER – ALL OFFERS WILL BE PRESENTED 13310 Little Morongo Rd (Building 1, Unit 1) presents a rare opportunity to acquire a stabilized, institutional-quality industrial investment in one of Southern California’s most established city-approved cannabis operations parks. The approximately 41,000 square foot, purpose-built facility was constructed in 2019 and is fully leased to a licensed, city- and state-approved indoor cultivation operator under a long-term, structured lease designed to deliver predictable and growing cash flow. The property is leased on a 7-year initial term that commenced June 1, 2025, with two additional 5-year extension options and annual rent increases. Base rent begins at approximately $82,000 per month in Year 1, with CAM, NNN, and security reimbursements phased in over time, creating a strong and visible NOI ramp without reliance on re-leasing or market rent assumptions. At the current offering price, the investment reflects an approximate 8.0% cap rate in Year 1, increasing materially over the hold period. Constructed with significant specialized improvements, the building features heavy power, reinforced concrete block construction, modern LED cultivation systems, and a highly functional layout tailored for indoor cultivation and processing. The tenant is responsible for utilities, interior maintenance, and cannabis-specific operating costs, providing ownership with minimal management responsibility. Located within a city-approved cannabis cultivation park, the property benefits from municipal alignment and long-term operational stability, as the City of Desert Hot Springs actively supports operator continuity due to its tax revenue base. The asset is offered below replacement cost and prior peak valuation, with additional upside through accelerated depreciation and cost segregation due to the scale of specialized improvements. This is a compelling opportunity for investors seeking durable income, contractual rent growth, and exposure to a well-established cannabis industrial market