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Denver, CO

2426-2428 South Federal Boulevard

Address:
2426-2428 South Federal Boulevard, Denver, CO 80219
Property Type:
Multi Tenant
Price:
$1,500,000
Cap Rate:
5.40% cap
NOI:
$72,674
Square Feet:
6,684 sqft
Lot Size:
0.89 Acres
Price Per Square Foot:
$224.42
Year Built:
1956
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Investment Highlights

Investment Highlights

Investment Highlights

  • Buddy Boy Brands is a Strong Tenant with $25 Million Annual Revenue
  • This Location is One of Seven Buddy Boy Dispensaries in the Denver Area
  • Ideal Location on South Federal with High Visibility & Ample Parking
  • Two-Tenant Freestanding Retail Shop: Lease In Place and 4,230 Square Feet Available for Immediate Occupancy
  • 84’ of Frontage on Federal Boulevard
  • Additional Revenue from Billboard & Yard Lease

Investment Overview

Marcus & Millichap is pleased to present the opportunity to acquire the property located at 2426-2428 South Federal Boulevard in Denver, Colorado, leased to Buddy Boy Brands. The subject property consists of approximately 6,684 square feet of retail space and is situated on 0.89 acres of land. The two-tenant asset features a free-standing retail shop with ample parking. With 84’ of frontage on Federal Boulevard, the property has an ideal location with high visibility. The asset offers a lease with over four years remaining and 4,230 square feet of available space for immediate occupancy. Buddy Boy Brands operates seven dispensaries in the Denver area, generating an annual revenue of $25 million. Buddy Boy Brands offers quality medical and recreational marijuana, edibles, concentrates, and paraphernalia. The property is offered in tandem with another Buddy Boy property, priced separately, located at 5050 York Street, in Denver, Colorado.

A confluence of events turned Denver into one of the most active industrial markets in the country in the past decade. Robust demand in this regional market with strong economic growth this cycle is stemming from the growth of retail sales, employment, and industrial production in the metro area and the greater Colorado region. Furthermore, the emergence of the marijuana industry’s presence with the passing of Amendment 64 in November 2012 created a new demand driver this cycle, with new and relatively unsophisticated tenants operating with entirely different profit margins. Vacancies were below the long-term average even after 2019 shattered records with more than six million square feet of deliveries. Entering 2020, around 5.5 million square feet was under construction. Industrial rents are more than 60 percent above the peak of the previous cycle, one of the best performances in the nation. Investors remained enthusiastic about Denver’s industrial fundamentals by setting a record high for sales volume for the second straight year. More than $1.7 billion worth of assets traded in 2019, more than $200 million more than the previous year. Pricing continues to climb upward, albeit at a more modest pace than in past years, according to CoStar’s Pricing Trends (CoStar).

BROKER OF RECORD
ADAM LEWIS
Colorado Broker of Record
1225 17th Street, Suite 1800
Denver, CO 80202
Tel: (303) 328-2050
adam.lewis@marcusmillichap.com
License: ER. 100091205
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. © 2021 Marcus & Millichap. All rights reserved. (Activity ID: ZAC0050553)