Zoned Properties, Inc. is excited to announce the acquisition of its property in Surprise, Arizona, with tenant Sunday Goods. The acquisition and development of this property have been capitalized through cash on hand and a $1.62 million construction loan from a private family office lender. Transaction Highlights: The Company will acquire the property for approximately $1.60 million, including purchase price, closing costs, and selling developer's improvements.

The Company has obtained a $1.62 million non-recourse construction loan from a private family office lender. The Company will provide a $1.0 million tenant improvement allowance for Sunday Goods to use toward the construction and development of its retail dispensary on the property. The Company believes Sunday Goods will need to invest additional capital to complete the construction and development of its retail dispensary on the property.

The investment property is leased to Sunday Goods under a long-term, absolute-net lease agreement, which will produce an approximate 13.4% effective cap rate when straight-lined over the term of the lease agreement. The lease includes 3% annual increases in base rent, yielding approximately $350,000 in annual base rental revenue when straight-lined over the life of the lease term.