Marcus & Millichap is pleased to present the opportunity to acquire the property located at 1235 South Huron Street in Denver, Colorado, occupied by the current owner, Allgreens. The subject property consists of approximately 4,675 square feet of industrial space and is situated on 0.22 acres of land. The single-tenant asset features a clear height of 16’, masonry construction, and eight parking spaces. With proximity to Interstate 25 via South Santa Fe Drive, the property sits four miles south of Downtown Denver. Upon the sale of the property, Allgreens plans to execute a five-year triple net leaseback at $24.39 per square foot with 3.0 percent rent escalations and two five-year renewal options. Established in 2009, Allgreens is a medical and recreational-use dispensary, holding the first license for providing medical cannabis in the state of Colorado.
The subject property is located within Upper South Central, a relatively small submarket containing 4.8 million square feet of industrial space. In the third quarter of 2024, the vacancy rate slightly increased 20 basis point to 5.3 percent and remained comfortably below the Denver market average of 7.6 percent. Early reports show Upper South Central vacancies receding noticeably in Q4 as net absorption jumped back into positive territory. Annual asking rent growth decelerated in Q3, falling 210 basis points to 1.5 percent, representing the slowest pace since Q4 2010. Going into the last quarter of the year, there were no industrial properties under construction in Upper South Central thanks to the lack of available land to develop. Without the threat of new supply, rent growth and vacancies will be affected by demand for the foreseeable future (CoStar).
Denver-Aurora-Lakewood metro is home to three million people among 10 counties. Known as the Mile High City, Denver, which is also a county, serves as the state’s capitol and largest city, with approximately 742,800 residents. Metro Denver houses 10 Fortune 500 companies, including Newmont Goldcorp, Arrow Electronics, and DISH Network. Aerospace, financial services, and health care are some of the industries that have driven economic growth in the new millennium. The passage of Amendment 64 in November 2012, created a new industry in marijuana, largely consisting of young thriving businesses. Metro Denver provides a high quality of life with rural and urban amenities. Rocky Mountain National Park is less than two hours driving from the metro area, and the city houses franchises for all four major sports.
BROKER OF RECORD
ADAM LEWIS
Denver Broker of Record
1144 15th Street, Suite 2150
Denver, CO 80202
Tel: (303) 328-2050
Adam.Lewis@MarcusMillichap.com
License CO: ER100091205
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, express or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2024 Marcus & Millichap. All rights reserved. (Activity ID: ZAF0050655)
