Marcus & Millichap is pleased to present the opportunity to acquire the property located at 1955 South Quince Street in Denver, Colorado, leased to Bonsai Cultivation. The subject property consists of approximately 42,392 square feet of industrial space and is situated on 1.92 acres of land. The single-tenant asset features a clear height of 16’, one dock-high door, one drive-in door, heavy three-phase power with 1,200 amps and 120 to 208 volts, and 47 parking spaces. With proximity to Interstates 25 and 225, the property can easily access Downtown Denver and the Denver International Airport. Bonsai is signed to a triple-net lease through September 2033 at $20.21 per square foot with 2.0 percent annual rent escalations and one three-year renewal option. As an occupant since 2014, Bonsai has invested over $1.35 million into the property since 2021, incentivizing the tenant to serve out the full lease and renew. As a state-of-the-art cultivation facility, the property maintains over 1,000 LED lights, an automated irrigation system, and an automated pre-roll machine. Since it opened market operations, Bonsai Cultivation has served as one of the leading wholesale cannabis producers in Denver.
The subject property sits within the relatively small Glendale submarket, containing 2.7 million square feet. During the third quarter of 2024, net absorption dipped into negative territory for the third straight quarter, however, vacancy rates only rose 20 basis points to 4.6 percent. Annual rent growth continued to decelerate to a 12-year low of 2.1 percent, pushing the average asking rent to about $14.75 per square foot. Thanks to a lack of available land to develop, no industrial properties have been delivered to Glendale since the start of 2017. Given that supply is a nonfactor, vacancies and rent growth will be determined 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: ZAF0050570)
