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Page 10 — COLORADO REAL ESTATE JOURNAL — May 6-May 19, 2015
Greater Denver
by Jill Jamieson-Nichols
Alocal brokerage team is chart-
ing new territory with the sale of
a huge marijuana portfolio.
One of Denver’s largest pro-
ducers of medical and recreation-
al marijuana is exploring the sale
of its business, along with two
warehouses, a dispensary and
320 acres of land zoned and
licensed for growing marijuana.
“It’s pioneering new territory
as a broker,” said Tom Welsh
of Welsh Commercial LLC, who
co-listed the portfolio with Tonie
Krosky of Golden Buff Realty Inc.
“The business is highly profit-
able, and we’ve had some inter-
esting inquiries in the first few
days of marketing,” said Welsh.
Initial conversations with poten-
tial buyers are in process.
“I think it’s a good time to
see what our options are with
the investors that are out there
trying to get into the business,”
said one of the owners, who did
not want the company identified
for the reasons including security
issues surrounding the all-cash
industry.
The deal includes a
60,000-square-foot grow facility
and dispensary with estimated
annual revenue of $25 million,
a similar building with 40,000
sf and estimated revenue of $15
million a year, a 3,000-sf dispen-
sary and the acreage, which is
located in Southern Colorado
and has water and utilities to the
site. The land, 15 acres of which
are being cultivated, is believed
to be the largest tract of its kind
in Colorado.
“If you’re going to askme what
it’s worth, none of us has any
idea,” said Welsh, noting there
are no comparable sales to bring
to the table. It’s estimated that in
full production, the land could
yield a crop worth $8 million to
$10 million an acre annually.
Potential buyers are required
to furnish financial information
before touring the properties
to make sure they’re qualified.
“It’s a little different than selling
a shopping center. We have an
aggressive screening process for
buyers that we put into place,”
said Welsh, adding the owner
would consider various scenarios
for selling the business and/or
the real estate components.
While the two warehouses are
fully built out for marijuana pro-
duction, with separate rooms for
different stages of plant growth,
drying space, trimming, etc.,
“There’s definitely room for
growth,” according to the owner.
Each of the buildings has extra
capacity, includingwater, heating
and cooling.
“The potential for the buyer is
to increase production, increase
revenue,” said Welsh. “It
depends on how far they want
to take it.”s
Tonie Krosky of Golden Buff Realty and TomWelsh of Welsh Commercial
are marketing this Denver warehouse as part of a marijuana portfolio.
A drying room in one of the warehouses that are being offered for sale.
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