By Roland Murphy for Arizona Builder’s Exchange
The mainstreaming of licensed cannabis operations as a force in Arizona real estate and development took another step forward this week with the announcement by Scottsdale-based Zoned Properties of a mixed-use, master planned cultivation facility in Chino Valley.
The property has been leased to a licensed marijuana cultivation tenant on a 20-year, NNN structure. Currently on the 47.6-acre site is a 35KSF operational facility. Another 45KSF is planned for development by year end.
The undertaking was granted a multiyear Phased Protected Development Rights Plan by the Town of Chino Valley in February of 2016.
The three-phase plan will ultimately incorporate the cannabis operation and facilities, solar arrays, retail, residential and mixed-use agriculture.
In announcing the master plan, Zoned Properties CEO Bryan McLaren said, “Over the past several years, Zoned Properties has successfully developed and leased what we consider to be merely the foundation for the Chino Valley Cultivation Facility. Today’s operating facilities include a small portion of what has been approved in collaboration with local officials as part of a long-term development deal with the municipality. As market demand continues to grow, the Chino Valley Cultivation Facility is well-positioned to expand into a much larger development that can service the entire state of Arizona.”
He added, “The master plan includes roughly 25 acres of operational space dedicated to medical marijuana cultivation and processing, which can be leased at premium rental rates compared to traditional commercial real estate.”
A copy of the site plan McLaren emailed to AZBEX shows an ambitious three-phase development goal, with a total developed square footage of nearly 2.3MGSF when fully built-out.
- Commercial Strip: 254KSF
- Existing Operation: 193KSF
- Operation Expansion: 66.6KSF
- Solar Array: 172KSF
- Operation: 192.5KSF
- Residential: 221KSF
- Solar Array: 229KSF
- Vineyard: 361KSF
- Operation: 192.5KSF
- Residential: 195KSF
- Solar Array: 203.5KSF
In the email exchange, McLaren gave a general, anticipated timeline and expressed excitement about the opportunity the project provides. “We hope to have all three of the phases completed over the next five years,” he said. “(We’re) generally aiming to complete Phase 1 by 2019, Phase 2 completed by end of 2020, and Phase 3 complete by end of 2022.”
He cautioned, however, the timeline is dependent on the medical marijuana industry’s ongoing acceptability and growth. “These targets are significantly driven by the pace at which the medical marijuana industry develops and market demand grows in Arizona. We believe this schedule matches the growth rate, but any number of legislative and regulatory market factors could shift those timelines.”
Chino Valley Properties, LLC, a wholly-owned subsidiary of Zoned Properties, Inc., is the owner. DAC Studios is the architect of record and a partner in the design and master planning processes. Ridgeview Contracting, based in Prescott Valley, is the general contractor.
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