20 Quail Run Cir
Salinas, CA 93907
Office Property For Sale

HIGHLY DESIRABLE AREA/BUILDING | The property is a 15,000 SF office, manufacturing, research and development, and warehousing facility. It is located at 20 Quail Run Circle, Salinas, CA 93907 within a vibrant buisness park with other business tenants ranging from government, medical and home improvement. BELOW MARKET RENT | Examples of rents in the area include businesses paying $1.60 to $2.00 per square foot for similar space. While Cypress could be paying much higher rents, the management of the tenant and the landlord decided that the long term viability of this tenant was more important than the short-term gain. The rental rate that Cypress is paying is unique within the Cannabis industry where the rents are often higher NNN LEASE | The lease is NNN, with minimal landlord responsibilities. The tenant is responsible for maintaining and repairing all aspects of the subject property including the roof, structure, parking lots, HVAC, insurance and property taxes. LONG TERM LEASE | Tenant has operated in this location since March 2015. The lease term expires on December 31, 2027; with three options to extend the term until June 30, 2028. PERSONAL GUARANTEE | The management/owners of Cypress Manufacturing personally guarantee the payments of the lease. RENT INCREASES | The lease provides for a 23% increase on January 1, 2023 and increases of over 15% in each of the next three option periods. This provides a hedge against potential future inflation. TENANT IS A RECOGNIZED LEADER | Cypress Manufacturing received the "Small Business of the Year Award" from Monterey County in 2016, currently employing 42 people at this facility. Cypress plans to increase their employment count as the business grows with the legalization of cannabis within the state of California. The company is committed to remaining in the City of Salinas and serving the community as a responsible and legal compliant participant in the growing medical and recreational Cannabis industry. The company has licenses with the City and County which are tied to operating the business at this facility.