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Denver, CO

Allgreens

Address:
1235 South Huron Street, Denver, CO 80223
Property Type:
Single Tenant
Price:
$1,200,000
Cap Rate:
8.90% cap
NOI:
$106,777
Square Feet:
4,675 sqft
Lot Size:
0.22 Acres
Price Per Square Foot:
$256.68
Year Built:
1959
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Investment Highlights

Investment Highlights

Investment Highlights

  • 100% Leased Single-Tenant Industrial Property
  • Five-Year Sale-Leaseback to be Executed at Closing
  • Tenant is Allgreens Dispensary, Recipient of First Operational License in 2009
  • Allgreens Specializes in Cultivation and Extraction of Cannabis
  • Proximate to Santa Fe and I-25
  • High Barrier-to-Entry Market with a 1.4% Vacancy Rate (Costar)

Investment Overview

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 Dispensary. The subject property consists of approximately 4,675 square feet of flex space and is situated on 0.22 acres of land. The asset features metal roofing, masonry construction, a clear height of 16’, and three-phase power. Upon sale of the property, Allgreens Dispensary plans to execute a five-year triple-net leaseback with 3 percent rent escalations. In 2009, Allgreens Dispensary was the recipient of the first medical marijuana license issued by the city of Denver. Allgreens Dispensary specializes in the cultivation, extraction, and retail distribution of quality cannabis and hash for medicinal purposes. Primely situated within the Upper South Central submarket, the property has proximate access to U.S. Route 85 (South Santa Fe Drive) and Interstate 25.

Upper South Central is a relatively small submarket containing about 4.7 million square feet of industrial space. Like the overall Denver market, logistics facilities make up most of the local inventory, accounting for 70 percent. Specialized space and flex space round out the inventory, at 26 percent and 4 percent, respectively. Since the first quarter of 2021, the vacancy rate has steadily fallen 210 basis points to settle near a record low at 1.4 percent in Q3 2022. Historically low vacancies have helped push market rent growth up to 7.8 percent year-over-year during the third quarter. Industrial rents in Upper South Central now average $12.15 per-square-foot, offering landlords a 6 percent premium over the market average. With no industrial properties under construction, there will be no supply-side pressure on vacancies or rents for the foreseeable future. Furthermore, the inventory has actually contracted over the last two decades with demolition activity outpacing new construction (CoStar). Upper South Central’s low vacancy rate and strong rent growth offer robust fundamentals for industrial investors.

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
1225 17th Street, Suite 1800
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. © 2022 Marcus & Millichap. All rights reserved. (Activity ID: ZAD0050631)