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Warehouse

5050 York Street

5050 York St, Denver, CO 80216

Listing Price: $3,300,000

Cap Rate
9.03%
Gross SF
18,165
Price/Gross SF
$181.67
Lot Size
3.94 acres
Year Built
1970
Rentable SF
18,165

Investment Overview

Marcus & Millichap is pleased to present the opportunity to acquire the property located at 5050 York Street in Denver, Colorado, leased to Buddy Boy Brands. The subject property consists of approximately 18,165 square feet of space and is situated on 3.94 acres of land at the corner of York and Brighton Boulevard. The single tenant asset features a cannabis cultivation facility with an on-site dispensary. The property has operated as a grow facility, in which Buddy Boy Brands serves a lease with an extension into 2028. 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 Dispensary, priced separately, located at 2426 South Federal Boulevard, in Denver, Colorado. Located less than a mile from Interstate 70, the property is a 10-minute drive to Downtown Denver. The property is situated within Upper North Central submarket, a midsized submarket containing around 10 million square feet of industrial space. Logistics facilities make up nearly 70 percent of the inventory, followed by about 30 percent of specialized space and less than one percent of flex space. At 6.8 percent, the vacancy rate in Upper North Central is commensurate with the overall Denver market. Despite the vacancy rate rising over the past year, industrial rents continue to grow at solid annual pace of 2.5 percent. With industrial rents averaging $9.98 per square foot, Upper North Central has a slight competitive edge in pricing over the market at large that averages $10.28. With no projects under construction, there are no supply-side pressures on the vacancy rate or rent growth in the near-term. With a submarket cap rate of 6.4 percent, investment demand remains strong in Upper North Central (CoStar). 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).

Investment Highlights

  • Single-Tenant Industrial Cannabis Cultivation Facility With On-Site Dispensary
  • Tenant is Buddy Boy Brands, With 7 Dispensaries in the Denver Area and $25M Annual Revenue
  • Successful Grow Facility In Place With Lease Extension into 2028
  • Property is Nearly 4 Acres on York/Brighton Boulevard
  • Property is Ideally Located Less Than 1 Mile from I-70
  • 10-Minute Drive to Downtown Denver
  • Property is Offered in Tandem With Another Buddy Boy Dispensary (Priced Separately)

Exclusively Listed By

Financing By

Listing Price: $3,300,000

Cap Rate
9.03%
Gross SF
18,165
Price/Gross SF
$181.67
Lot Size
3.94 acres
Year Built
1970
Rentable SF
18,165

Investment Highlights

  • Single-Tenant Industrial Cannabis Cultivation Facility With On-Site Dispensary
  • Tenant is Buddy Boy Brands, With 7 Dispensaries in the Denver Area and $25M Annual Revenue
  • Successful Grow Facility In Place With Lease Extension into 2028
  • Property is Nearly 4 Acres on York/Brighton Boulevard
  • Property is Ideally Located Less Than 1 Mile from I-70
  • 10-Minute Drive to Downtown Denver
  • Property is Offered in Tandem With Another Buddy Boy Dispensary (Priced Separately)

Investment Overview

Marcus & Millichap is pleased to present the opportunity to acquire the property located at 5050 York Street in Denver, Colorado, leased to Buddy Boy Brands. The subject property consists of approximately 18,165 square feet of space and is situated on 3.94 acres of land at the corner of York and Brighton Boulevard. The single tenant asset features a cannabis cultivation facility with an on-site dispensary. The property has operated as a grow facility, in which Buddy Boy Brands serves a lease with an extension into 2028. 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 Dispensary, priced separately, located at 2426 South Federal Boulevard, in Denver, Colorado. Located less than a mile from Interstate 70, the property is a 10-minute drive to Downtown Denver. The property is situated within Upper North Central submarket, a midsized submarket containing around 10 million square feet of industrial space. Logistics facilities make up nearly 70 percent of the inventory, followed by about 30 percent of specialized space and less than one percent of flex space. At 6.8 percent, the vacancy rate in Upper North Central is commensurate with the overall Denver market. Despite the vacancy rate rising over the past year, industrial rents continue to grow at solid annual pace of 2.5 percent. With industrial rents averaging $9.98 per square foot, Upper North Central has a slight competitive edge in pricing over the market at large that averages $10.28. With no projects under construction, there are no supply-side pressures on the vacancy rate or rent growth in the near-term. With a submarket cap rate of 6.4 percent, investment demand remains strong in Upper North Central (CoStar). 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).

Exclusively Listed By

Financing By

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