Triple-net | Medical Marijuana Dispensary | Cap Rates
Hey all, 

Looking into a deal of a FSTN Dispensary and I was hoping I could get some feedback regarding what people have seen on the market or what kind of Caps these are trading for. Any feedback will be appreciated. 

Hope everyone has a good day.
[{"id": "hy4huw9", "text": "10+", "replies": [], "depth": 1}, {"id": "hy4ihex", "text": "You can set your own cap rate based off the lending you can get and the growth of the market.", "replies": [{"id": "hy628h2", "text": "Any suggestions on lenders? I looked into this a while back and determined debt was not feasible.", "replies": [{"id": "hy64kto", "text": "Unfortunately not.\n\nI\u2019m just making a general finance point.\n\nCap rates are misunderstood as an arbitrary value that is tied to the 10Y T-Bond yield in some *magical* way. \n\nIn actuality they are the consequence of terminal discount rates applied to real estate in a long term hold scenario.\n\nUsing WACC, you can ballpark an acceptable cap rate for the market. \n\nUsing DCF, you can back into a max purchase price that is acceptable for your particular situation and assumptions.", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "hy4kqww", "text": "I saw a land land lease one sell at 6% cap locally not long ago.", "replies": [], "depth": 1}, {"id": "hy5drg6", "text": "What's the city and state?", "replies": [], "depth": 1}, {"id": "hy5hh4h", "text": "Very area dependant.  A 10 year lease on medical where rec is on the ballot isnt worth the paper its written on.  A warehouse for a grower in ca that had a decade of business history is going to approach institutional caps.  Lots of legal issues too.\n\n7 to 22 percent is What I saw when I looked into this like 6 months ago", "replies": [], "depth": 1}]