Terrasana

• High Barrier to Entry: The property operates as a state-licensed cannabis dispensary, a use that benefits from strict licensing caps, zoning restrictions, and regulatory hurdles, making tenant relocation significantly more difficult compared to traditional retail uses.
• Strong Ohio Cannabis Market: Ohio is one of the most attractive cannabis markets in the United States, with medical marijuana sales exceeding $2.35 billion to date. In 2023, Ohio became the 24th state to legalize recreational marijuana, with adult-use sales commencing in August 2024. Since launch, adult-use sales have already surpassed $1.41 billion.
• E-Commerce-Resistant Tenant: Cannabis retail is less susceptible to e-commerce disruption than many traditional retail sectors, providing valuable portfolio diversification benefits for net-lease investors.
• Limited Competition: This property is the only dispensary within its immediate trade area, with the nearest competitor located approximately six miles away.
• Vertically Integrated Operator: Terrasana operates multiple retail locations throughout Ohio and continues to expand its footprint. In addition to its retail operations, Terrasana holds Ohio cultivation and processing licenses, allowing it to operate as a fully integrated grow-process-retail business. This scale and vertical integration enhance the tenant’s operational stability and financial durability.
• Regulatory Tailwinds & Protected Market Position (Ohio Senate Bill 56): Ohio recently enacted Senate Bill 56, effective March 20, 2026, which imposes a statutory cap of 400 marijuana dispensaries. The law also restricts intoxicating hemp products—including delta-8 THC products, and similar products—to licensed dispensaries only, eliminating competition from unlicensed gas stations, smoke shops, and convenience stores. Together, these provisions limit new supply, protect each dispensary’s trade area, and redirect consumer demand toward licensed operators, reinforcing the scarcity value, defensible market position, and long-term viability of this fully licensed dispensary.
• Federal Rescheduling Tailwind (Marijuana to Schedule III): In April 2026, the DEA reclassified state-licensed medical marijuana from Schedule I to Schedule III, with broader rescheduling underway. Critically, Schedule III eliminates the punitive IRC Section 280E tax burden, sharply improving operator’s profitability and cash flow — strengthening tenant financial health, rent coverage, and long-term durability.
• Direct Interstate 480 Access & Visibility: The property sits immediately off Interstate 480, one of Greater Cleveland’s busiest east-west arteries, carrying roughly 100,000–140,000 vehicles per day through this corridor (and ~151,000/day near the I-77 interchange). This freeway-adjacent position delivers exceptional regional access and exposure, drawing customers well beyond the immediate neighborhood.
• Established Regional Retail Node: The site is part of the Shoppes at Vista Way / Highland Park retail district, surrounded by strong national and regional co-tenancy including Giant Eagle, Starbucks, Chipotle, Penn Station, Applebee’s, Penn Station, Angel Dental Care, Padel Square, and MTech. This concentration of daily-needs and destination retail generates consistent cross-shopping traffic and reinforces the location as an established commercial destination.
• Supply-Constrained Infill Position: As a fully developed, landlocked suburban corridor anchored by major freeway infrastructure, the area offers limited availability of comparable, well-located retail sites — supporting the long-term scarcity value and desirability of this specific location.
• Major Metropolitan Market: The asset sits within the Cleveland MSA, one of the largest MSAs in the Midwest with roughly two million residents, providing institutional-market depth, liquidity, and long-term economic stability.