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Warehouse

150 Rio Grande Boulevard

150 Rio Grande Blvd, Denver, CO 80223

Listing Price: $4,200,000

Cap Rate
7.49%
Gross SF
18,763
Price/Gross SF
$223.84
Lot Size
0.69 acres
Year Built
1950
Rentable SF
18,763

Investment Overview

Marcus & Millichap is pleased to present the opportunity to acquire the property located at 150 Rio Grande Boulevard in Denver, Colorado, leased to The Chronic Factory, LLC. The subject property consists of approximately 18,763 square feet of space and is situated on 0.69 acres of land. The single-tenant asset features 2,582 square feet of retail/office space and a fully fenced-in yard. Situated just 2.5 miles from Downtown Denver, the property is centrally positioned along Interstate 25 and 6th Avenue. As of May 2022, there are five years remaining on the absolute net lease, with 3.0 percent annual rent escalations and two 7-year renewal options. The Chronic Factory uses the property as a cannabis cultivation facility and on-site dispensary. The local vertically integrated cannabis company has been in operation since 2013 and holds five active licenses attached to the subject property. The asset is located within Lower Central, a midsized submarket, containing around 8.1 million square feet of industrial space. While logistics facilities make up the largest proportion of local supply at 70 percent, specialized space accounts for a considerable 27 percent of the inventory. In 2021, the local supply contracted as demolitions hit a record high of nearly 215,000 square feet. As a result, Lower Central’s vacancy rate dropped into record territory at just 1.4 percent by the end of Q1 2022. With supply tightening, annual market rents grew by 8.1 percent during this time, marking the highest growth rate since 2016. With no industrial projects underway, there are no supply-side pressures on vacancy or rent growth for the foreseeable future in Lower Central (CoStar). Denver-Aurora-Lakewood metro is home to three million people among ten counties. Known as the Mile High City, Denver, which is also a county, serves as the state’s capital and largest city, with approximately 742,800 residents. Metro Denver houses ten 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.

Investment Highlights

  • Single-Tenant Industrial Cannabis Cultivation Facility with On-Site Dispensary
  • Five Years Remaining on the Absolute Net Lease with 3% Yearly Escalations and Two 7-Year Renewal Options
  • Tenant is the Chronic Factory, a Local Vertically Integrated Cannabis Company That Has Been in Operation Since 2013 and Currently Holds Five Active Licenses Attached to the Property
  • Property is 18,763 Square Feet on 0.69 Acres with a Fenced-In Yard
  • Centrally Located Along I-25 and 6th Avenue Just 2.5 Miles from Downtown Denver
  • Tenant Has Completed $1,000,000 in Buildout Since They Moved In

Exclusively Listed By

Broker of Record

  • Adam Lewis

    Vice President/Regional Manager

    (303) 328-2000

    License(s) CO: ER100091205

    Colorado

Financing By

Warehouse

150 Rio Grande Boulevard

Listing Price: $4,200,000

Cap Rate
7.49%
Gross SF
18,763
Price/Gross SF
$223.84
Lot Size
0.69 acres
Year Built
1950
Rentable SF
18,763

Investment Highlights

  • Single-Tenant Industrial Cannabis Cultivation Facility with On-Site Dispensary
  • Five Years Remaining on the Absolute Net Lease with 3% Yearly Escalations and Two 7-Year Renewal Options
  • Tenant is the Chronic Factory, a Local Vertically Integrated Cannabis Company That Has Been in Operation Since 2013 and Currently Holds Five Active Licenses Attached to the Property
  • Property is 18,763 Square Feet on 0.69 Acres with a Fenced-In Yard
  • Centrally Located Along I-25 and 6th Avenue Just 2.5 Miles from Downtown Denver
  • Tenant Has Completed $1,000,000 in Buildout Since They Moved In

Investment Overview

Marcus & Millichap is pleased to present the opportunity to acquire the property located at 150 Rio Grande Boulevard in Denver, Colorado, leased to The Chronic Factory, LLC. The subject property consists of approximately 18,763 square feet of space and is situated on 0.69 acres of land. The single-tenant asset features 2,582 square feet of retail/office space and a fully fenced-in yard. Situated just 2.5 miles from Downtown Denver, the property is centrally positioned along Interstate 25 and 6th Avenue. As of May 2022, there are five years remaining on the absolute net lease, with 3.0 percent annual rent escalations and two 7-year renewal options. The Chronic Factory uses the property as a cannabis cultivation facility and on-site dispensary. The local vertically integrated cannabis company has been in operation since 2013 and holds five active licenses attached to the subject property. The asset is located within Lower Central, a midsized submarket, containing around 8.1 million square feet of industrial space. While logistics facilities make up the largest proportion of local supply at 70 percent, specialized space accounts for a considerable 27 percent of the inventory. In 2021, the local supply contracted as demolitions hit a record high of nearly 215,000 square feet. As a result, Lower Central’s vacancy rate dropped into record territory at just 1.4 percent by the end of Q1 2022. With supply tightening, annual market rents grew by 8.1 percent during this time, marking the highest growth rate since 2016. With no industrial projects underway, there are no supply-side pressures on vacancy or rent growth for the foreseeable future in Lower Central (CoStar). Denver-Aurora-Lakewood metro is home to three million people among ten counties. Known as the Mile High City, Denver, which is also a county, serves as the state’s capital and largest city, with approximately 742,800 residents. Metro Denver houses ten 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.

Exclusively Listed By

Broker of Record

  • Adam Lewis

    Vice President/Regional Manager

    (303) 328-2000

    License(s): CO: ER100091205

    Colorado

Financing By

MM Texture Background
MM Textured Background Lower