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Single-Tenant Industrial

Allgreens

1235 S Huron St, Denver, CO 80223

Listing Price: $1,163,265

Cap Rate
9.80%
Gross SF
4,675
Price/Gross SF
$248.83
Lot Size
0.22 acres
Year Built
1959
Rentable SF
4,675

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. The subject property consists of approximately 4,675 square feet of industrial space and is situated on 0.22 acres of land. The single-tenant asset features a clear height of 16’, masonry construction, and eight parking spaces. With proximity to Interstate 25 via South Santa Fe Drive, the property sits four miles south of Downtown Denver. Upon the sale of the property, Allgreens plans to execute a five-year triple net leaseback at $24.39 per square foot with 3.0 percent rent escalations and two five-year renewal options. Established in 2009, Allgreens is a medical and recreational-use dispensary, holding the first license for providing medical cannabis in the state of Colorado.

The subject property is located within Upper South Central, a relatively small submarket containing 4.8 million square feet of industrial space. In the third quarter of 2024, the vacancy rate slightly increased 20 basis point to 5.3 percent and remained comfortably below the Denver market average of 7.6 percent. Early reports show Upper South Central vacancies receding noticeably in Q4 as net absorption jumped back into positive territory. Annual asking rent growth decelerated in Q3, falling 210 basis points to 1.5 percent, representing the slowest pace since Q4 2010. Going into the last quarter of the year, there were no industrial properties under construction in Upper South Central thanks to the lack of available land to develop. Without the threat of new supply, rent growth and vacancies will be affected 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.

Investment Highlights

  • Single-Tenant 4,675-Square-Foot Industrial Property Situated on 0.22 Acres
  • Features 16' Clear Height, Masonry Construction, and Eight Parking Spaces
  • Five-Year Triple-Net Sale-Leaseback with 3.0% Rent Escalations
  • Occupied by Allgreens, Holder of First Medical Cannabis State License
  • Proximity to I-25 in Outperforming Submarket with 5.3% Vacancy Rate

Exclusively Listed By

Single-Tenant Industrial

Allgreens

Listing Price: $1,163,265

Cap Rate
9.80%
Gross SF
4,675
Price/Gross SF
$248.83
Lot Size
0.22 acres
Year Built
1959
Rentable SF
4,675

Investment Highlights

  • Single-Tenant 4,675-Square-Foot Industrial Property Situated on 0.22 Acres
  • Features 16' Clear Height, Masonry Construction, and Eight Parking Spaces
  • Five-Year Triple-Net Sale-Leaseback with 3.0% Rent Escalations
  • Occupied by Allgreens, Holder of First Medical Cannabis State License
  • Proximity to I-25 in Outperforming Submarket with 5.3% Vacancy Rate

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. The subject property consists of approximately 4,675 square feet of industrial space and is situated on 0.22 acres of land. The single-tenant asset features a clear height of 16’, masonry construction, and eight parking spaces. With proximity to Interstate 25 via South Santa Fe Drive, the property sits four miles south of Downtown Denver. Upon the sale of the property, Allgreens plans to execute a five-year triple net leaseback at $24.39 per square foot with 3.0 percent rent escalations and two five-year renewal options. Established in 2009, Allgreens is a medical and recreational-use dispensary, holding the first license for providing medical cannabis in the state of Colorado. The subject property is located within Upper South Central, a relatively small submarket containing 4.8 million square feet of industrial space. In the third quarter of 2024, the vacancy rate slightly increased 20 basis point to 5.3 percent and remained comfortably below the Denver market average of 7.6 percent. Early reports show Upper South Central vacancies receding noticeably in Q4 as net absorption jumped back into positive territory. Annual asking rent growth decelerated in Q3, falling 210 basis points to 1.5 percent, representing the slowest pace since Q4 2010. Going into the last quarter of the year, there were no industrial properties under construction in Upper South Central thanks to the lack of available land to develop. Without the threat of new supply, rent growth and vacancies will be affected 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.

Exclusively Listed By

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