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OFFERING MEMORANDUM
CANNABIS CULTIVATION & MANUFACTURING FACILITY INVESTMENT SALE
830 WYANDOT STREET | DENVER, COLORADO 80204
2 830 WYANDOT STREET | DENVER, COLORADO
AFFILIATED BUSINESS DISCLOSURE & CONFIDENTIALITY AGREEMENTThis Offering Memorandum has been prepared by NKF and has been obtained from sources believed reliable. While we do not doubt its accuracy we make no guarantee, warranty or representation about it. It is your responsibility to confirm, independently, its accuracy and completeness. No representation is made by NKF or Owner as to the accuracy or completeness of the information contained herein, and nothing contained herein is or shall be relied on as a promise or representation as to the future performance of the property. Although the information contained herein is believed to be correct, Owner and its employees disclaim any responsibility for inaccuracies and expect prospective purchasers to exercise independent due diligence in verifying all such information. Further, NKF, Owner and their employees disclaim any and all liability for representations and warranties, expressed and implied, contained in, or for omissions from, the Offering Memorandum or any other written or oral communication transmitted or made available to the recipient.
This Offering Memorandum and the contents, except such information, which is a matter of public record or is provided in sources available to the public, are of a confidential nature. By accepting this Offering Memorandum, you agree that you will hold and treat it in the strictest confidence, that you will not photocopy or duplicate it, that you will not disclose this Offering Memorandum or any of the contents to any other entity (except to outside advisors retained by you, if necessary, for your determination of whether or not to make a proposal and from whom you have obtained an agreement of confidentiality) without the prior written authorization of Owner or NKF and that you will use the information in this Offering Memorandum for the sole purpose of evaluating your interest in the property and you will not use the Offering Memorandum or any of the contents in any fashion or manner detrimental to the interest of Owner or NKF. If you have no interest in the property, please return the Offering Memorandum forthwith.
The Offering Memorandum does not constitute a representation that there has been no change in the business or affairs of the property or Owner since the date of preparation of the Offering Memorandum. Analysis and verification of the information contained in the Offering Memorandum is solely the responsibility of the prospective purchaser. Additional information and an opportunity to inspect the property will be made available upon written request to interested and qualified prospective investors. Owner and NKF each expressly reserve the right, at their sole discretion, to reject any or all expressions of interest or offers regarding the property and/or terminate discussions with any entity at any time with or without notice. Owner shall have no legal commitment or obligations to any entity reviewing this Offering Memorandum or making an offer to purchase the property unless and until such offer is approved by Owner, a written agreement for the purchase of the property has been fully executed, delivered and approved by Owner and its legal counsel, and any obligations set by Owner thereunder have been satisfied or waived.
THE TEAM
830 WYANDOT STREETDENVER, COLORADO
MICHAEL WAFER, JR.Associate Director303.260.4407 [email protected]
TIM D’ANGELO, SIORSenior Managing Director303.260.4252 [email protected]
MIKE WAFER, SIORExecutive Managing [email protected]
3830 WYANDOT STREET | DENVER, COLORADO
PURCHASE PRICE $16,667,088CAP RATE
10%
EXECUTIVE SUMMARY
Address 830 Wyandot Street | Denver, CO 80204
Tenant DPC Denver LLC & DPM Colorado LLC DBA Green Dragon Colorado
Use Cannabis cultivation & manufacturing infused products
Site Size 3.06 Acres
Rentable Building Area 91,981 SF
Expense Structure Absolute Net
Rent Increases 10% every 5 years
Lease Commencement Date 4/1/2020
Primary Term Expiration 3/31/2031 * (Currently 7/31/2021, but a 113 month renewal executed at closing, 10 years +/- effectively)
Annual NOI 4/1/2021 $1,666,708.80
Option Periods Four (4) consecutive Five (5) year options to renew
Year BuiltOriginal Structure: 1998 Greenhouses & Complete Renovation: 2014(Occupied since 2015)
4 830 WYANDOT STREET | DENVER, COLORADO
Strong industry leading Tenant
Long-term Lease
State-of-the-art facility critical to Tenant’s operations
Tenant has invested significantly in equipment & infrastructure to the facility in recent years
Barriers to entry in this industry
Covered land play in excellent infill location with highway visibility
Passive lease with no Landlord repair or replacement responsibilities
Excellent submarket & Denver metro area real estate fundamentals
STRONG TENANT
5.5% INDUSTRIAL VACANCY
STRATEGIC LOCATION
‘GROWING’ INDUSTRY
INVESTMENT ANALYSIS
25
5830 WYANDOT STREET | DENVER, COLORADO
Green Dragon is an industry leading vertically-integrated cannabis company based out of Denver, Colorado. The company’s Colorado operations include 15 retail locations, three cultivation facilities, and one lab with two extraction licenses in a marijuana-infused product (“MIP”) facility. Green Dragon’s mission is to be the premier cannabis retailer in product quality, value, and customer experience.
VERTICAL INTEGRATION• Full suite of products and capabilities from seed-to-sale
production of flower to manufactured concentrates, vape pens, edibles and topicals
• Full production capabilities and sales visibility allows the Company to respond rapidly to changing consumer habits
LOW COST PRODUCTION AND AUTOMATION• Among the lowest cost producers in the most mature
market in the US
• Utilizes best-in-class grow, harvest, extract and process systems to increase production efficiencies
REGULATORY EXCELLENCE• Best-in-class reporting, tracking, security, and operating
procedures
• Received licenses in highly competitive Colorado and Florida markets
RAPID AND PROFITABLE GROWTH• Demonstrated ability to scale sales and margin following
acquisitions
• Highly successful de novo strategy (site selection, build-out, and sales and marketing)
• Proven management team with record of profitable growth and margin expansion in a highly competitive market
PLATFORM FOR EXPANSION INTO NEW STATES• Proven leadership team and scalable business model;
ready to expand presence beyond the Colorado market
• Scalable IT, accounting, reporting and management systems, store designs, and sales and marketing
THE LOCATION
830 wyandot
7830 WYANDOT STREET | DENVER, COLORADO
LOCATION MAP
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Rocky MountainArsenal NWR
Green ValleyRanch
Buckley AirNational
Guard Base
HorseshoePark
DenverInternational
Airport
Cherry CreekState Park
Chat�eldReservoir
Bear CreekLake Park
Hayden GreenMountain Park
Bear CreekCanyon Park
GeneseePark
White RanchOpen Space Park
StandleyLake
Rocky MountainMetropolitan
Airport
BoulderMountain Park
EldoradoSprings
WalkerRanch Park
Mt. FalconCanyon Park
Aurora ReservoirRecreation Area
BROOMFIELD
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BRIGHTON
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LAKEWOOD
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WHEATRIDGE
DENVER
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LOUISVILLE
BOULDER
THORNTON
BRIGHTON
COMMERCECITY
WESTMINSTER
ARVADA
AURORA
ENGLEWOOD
GLENDALE
LITTLETON
LAKEWOOD
GOLDEN
WHEATRIDGE
DENVER
Subject Property
KEY DISTANCES
I - 25 .25 mile6th Avenue <1 mileI-70 4 milesDowntown Denver 2 milesDenver Int’l Airport 26 miles
AREA AERIAL
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9830 WYANDOT STREET | DENVER, COLORADO
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830 wyandot
830 WYANDOT STREETDENVER, COLORADO
MIKE WAFER, SIORExecutive Managing [email protected]
TIM D’ANGELO, SIORSenior Managing Director303.260.4252 [email protected]
MICHAEL WAFER, JR.Associate Director303.260.4407 [email protected]
