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Denver, CO

5070 Oakland Street

Address:
5070 Oakland Street, Denver, CO 80239
Property Type:
Sale Leaseback
Price:
$4,560,000
Cap Rate:
11.50% cap
Square Feet:
21,695 sqft
Lot Size:
1.47 acres
Year Built:
1978
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* By downloading the Marketing Package (Offering Memorandum) you hereby agree to the CONFIDENTIALITY AND BUYER REGISTRATION AGREEMENT.

Investment Highlights

Investment Highlights

Investment Highlights

• State-of-the-Art Cannabis Built-Out Facility
• Cannabis Industry in Colorado is in High-Growth Mode, Long-Term Tenant has no Plans to Vacate
• Tenant is a Stable Company with Increasing Revenues Year Over Year
• Located in Montbello District, 20 Minutes to Downtown Denver and 25 Minutes to the Airport
• Easy Access to Major Highways I-70, I-25, and I-270 for Quick Access to Boulder

Investment Overview

Marcus & Millichap is pleased to present the opportunity to acquire the property located at 5070 Oakland Street in Denver, Colorado, leased to Seed & Smith. The subject property consists of approximately 21,695 square feet of space and is situated on 1.47 acres of land. The asset is an owner-built, state-of-the-art cannabis facility with a stable, long-term tenant who has no plans to vacate. The subject property features 21” clear height, 50 parking spaces, and two dock-high doors. With the cannabis industry in Colorado in high-growth mode, tenant Seed & Smith has had increasing sales revenues year-over-year. The asset is in the Montbello district, which is 20 minutes from downtown Denver and 25 minutes from the airport, and has easy access to major highways I-70, I-25, and I-270 for quick access to Boulder.

Since 2014, Seed & Smith has been at the subject property and built an innovative company focused on creating exceptional cannabis products. They were ranked No. 13 on the Denver Business Journal’s “2020 Largest Denver-Area Cannabis Companies.” Seed & Smith began by rehabbing an old forklift manufacturing facility, turning a dated industrial space into a state-of-the-art production campus that is open to the public. Their products include flower, concentrates, The Seed & Smith Dart, and The Seed & Smith Pre-Roll Pack. The company offers a grow tour that was named “Colorado’s Best Cannabis Tour” by Forbes, consulting services, and wholesale products. Their processing and extraction services include distillation, CO2 extraction, and hydrocarbon extraction. (seedandsmith.com)

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
SKYLER COOPER
Colorado Broker of Record
1225 17th Street, Suite 1800
Denver, CO 80202
Tel: 303-328-2000
skyler.cooper@marcusmillichap.com
CO License: ER.100080019
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. © 2020 Marcus & Millichap. All rights reserved. (Activity ID: ZAB0060716)