Unique low cost opportunity in growing fast paced cannabis industry. The 2018 retail operation earnings were 266,344 on 1.6M in revenues. 2019 earnings were 176K on 1.5M in revenues. There is private financing available for both the building and the businesses.
Can be absentee owner. This business has a turn-key cash-flow positive retail store, an indoor grow operation that has been built out for a tier 1 grow operation. The building is over 23,000 square feet and the retail operation only takes up 1,500 square feet. The building has insulated walls and ceilings, very high ceilings of over 22 feet so Growers can add a 2nd level, excellent electrical capacity, and is right off of interstate I25. By adding s 2nd level, the total indoor grow operation could be approximately 35,000 square feet. Growers can grow much less expensively than in the Denver Metro area. The building cost is half of the cost in the Denver market, labor is available and reasonably priced, and the building is practically custom suited to a large indoor grow operation. The building has insulated walls, covered truck bays, very high ceilings, and high capacity electrical. The market conditions in this location are extremely favorable and boasts one of the highest per-capita sales of cannabis in the state.
The price for the retail operation is 950K plus inventory which is worth approximately 100K. The building is being offered at 1.35M and the seller will not sell one without the other being sold. Although it is still illegal for banks to provide financing for either the business or real estate with a cannabis operation inside there is private financing available and it is only a little more expensive than a bank loan.
The Owner states: “The business includes a turn-key cash-flow positive retail store, and an indoor grow operation that are perfectly suited for an absentee owner/group. In the highly regulated and compliance driven market, the business has the staff, standard operating procedures, process and policies necessary to meet the changing needs of the Colorado cannabis industry. This also includes the key employee’s, of the demanding recreational and medical grow operation. Staffed positions include: Retail store manager, compliance officer, operations manager and master grower. The owners prefer a buyer that will communicate directly with key employees and make/approve the most important decisions and approvals based on policy guidelines like adding additional equipment above a specific spending level, etc., but this can be done from anywhere. A new owner will be able to oversee the managers, grow this company, etc., as an absentee owner. The current owners spend a great deal of time traveling outside the state and manage the business operations remotely.”
The cannabis business is well-known and established in the industry and market a wide selection of medical and recreational products from the largest brands in Colorado.
This business has many long-standing customers and referral relationships which means Recurring Revenue which always supports a higher multiple. This business will not change after the sale based on their reputation and location. They maintain very high ratings in both Weedmaps and Google with very positive comments. There may be a new large source of buyers for the medical side of the grow business per this recent article: https://www.advocacydenver.org/fda-approved-cannabis-in-colorado-pharmacies/
The owners are retirement age and is selling due to retiring.