The owner states that “they believe growers can grow more economically in their location than in the Denver Metro area because of the much lower cost per square foot in building, lower cost and availability of employees, and buildout cost. The building is perfectly suited for a large in-door grow operation which could significantly lower growers’ costs.” Buildings of their size in the Denver Metroplex can cost 5M compared to their 1.95M, employees are 2/hour more expensive in Denver than in their market, and employees are easier to find from a lack of other options.
The business employs 17 very loyal and skilled workers including a long-term manager that makes 20/hr. All employees are expected to stay post closing. They run the grow operation in a way that the owner doesn’t have to do anything. It is completely turn-key. They also have no violations or write up which he credits to their model and employees. The run a very clean operation.
A buyer must get pre-qualified from the State of Colorado which must be completed before the owner will consider entertaining any offers. The owners believe their license will transfer to a pre-qualified buyer as smoothly as the law allows.They believe there will be no issues in the transition as long as the buyer completes all licensing requirements and follows all regulations.
They began medical retail operations in December of 2014, medical grow operations in January 2015, and recreational retail and grow operations in January 2015. They also sell concentrated oils. They have a phase 1 grow license which allows them to grow up to 10,000 plants. They still only produce 20% of what they sell and buy the rest of their products from other retailers. The new owner can continue to expand by adding a phase 2 and eventually a phase 3 growing operation. This can also accommodate concentrates, wax & shatter, live resin, etc. They are allowed to have up to 15 plants per medical marijuana customer and currently have approximately 1000 medical plants in their grow operation. This business has a great reputation for both consumers and employees and are in good standing with the City, County, State and MED. They have a great record for safety (OSHA) and no legal battles. They run a sustainable green operation where all water, soil, and plant materials are captured and recycled. They are recession-proof in fact, when the economy slows, people historically increase both alcohol and marijuana use. They already have the skilled employees to manage a larger operation.
Building: The building is 21,562 square feet and the retail store takes up 1,500 square feet of the 3,000 square foot office space including an upstairs office area with bathrooms, offices, storage, and a conference room. he remaining 18,562 square feet is designated for recreational and medical growing, employee area, and an inside docking area with garage. 4,100 of those square feet are being used for their Tier 1 Medical and Recreational growing operations. The location has a great floor plan, very functional, efficient, in good shape, and is up to commercial codes. The roof was replaced in 2017, and the HVAC, transformers, security cameras, and the grow equipment have all been replaced or added. Plus, the owners have spent almost 100K on upgrading the building to accommodate future growth in the growing operation. The floors are have been epoxied, electrical has been upgraded, HVAC upgraded, lighting upgraded or added, and the wood infrastructure has been added to quickly be able to increase the grow operation from phase 1 to phase 2. The land portion of the property is made up of 4 different parcels that contain a total of 22,972 square feet. The property includes all rights that may be lawfully owned and therefore the title is “free simple”. The location has a great floor plan, very functional, efficient, in good shape, and is up to all commercial codes. The tier 2 plan has a fully enclosable area approximately 5,600 square feet that with the ability to allow for 2 floors of tier 2 growing totaling 11,200 square feet. In addition, there are plans for tier 3 which includes an additional 5,000 square feet grow area, enclosed genetics area, sustainable process area, and enclosed garage for secure transport. The property has plenty of parking, including designated handicap spaces and is ADA compliant. Keep in mind that the building was a refrigerated building so the electrical already has the capacity needed for a larger grow operation. Electrical upgrades can be over $500K and this building should not need that.
Thank you for your consideration.
Jeff Chapman Eisnaugle
Businessbrokercolorado.com & Jeffchapmaneisnaugle.com