Recreational & Medical Marijuana Retail Store and Recreational & Medical Grow Operation
South Front Range Colorado
Unique low-cost opportunity in the growing fast-paced cannabis industry. The 2018 retail operation earnings were 266,344 on 1.6M in revenues. 2019 will be similar. There is private financing available for both the building and the businesses.
It can be an 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 boast one of the highest per-capita sales of cannabis in the state.
The price for the retail operation has just been lowered again to 750K plus inventory which is worth approximately 100K. The building is being offered at 1.95M 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 employees, 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 price for the retail operation has just been lowered to 750K plus inventory which is currently worth approximately 100K. The building is being offered at 1.95M 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 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 are selling due to retiring.
A buyer must get pre-qualified from the State of Colorado which must be completed before the owner will consider entertaining any offers. https://marijuanabrokercolorado.com/marijuana-pre-suitability-application/
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.
This business is 5 years old and have a solid name and the finest reputation for fair dealings. They 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.
Building(s): The retail store is approximately 1,500 square feet on street level with an opportunity to add an additional 1,500 square feet of unoccupied space. The indoor grow operations consist of 20,000 plus square feet which is designated for recreational and medical growing, or other potential process operations. The initial phase 1 grow operations includes 4,100 square feet is being used for their tier 1 recreational & medical growing operations. 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, which could also have a 2nd level enclosed genetics area, sustainable process area, and enclosed garage for secure transport. Plus, the HVAC, and the electrical has been upgraded including new transformers. lighting upgraded or added new, and the grow equipment have all been replaced or added in recent years. 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. The building and entire operation has security cameras and fully compliant with city, state and MED. The property has plenty of parking, including designated handicap spaces and is ADA compliant. At 1.95M the building is approximately half the cost that it would be in Denver.
Jeff Chapman Eisnaugle
Businessbrokercolorado.com & Jeffchapmaneisnaugle.com