![Cortez, Colorado](https://custom-images.strikinglycdn.com/res/hrscywv4p/image/upload/c_limit,fl_lossy,h_1000,w_500,f_auto,q_auto/41865/503806_250519.png)
Cortez, Colorado
$2,900,000 (business and property together)
Type: Recreational Cannabis Dispensary, Cultivation Operation and Brand
Size: 20,000 +/- sqft. | 6.7 acres
- Full description below -
Cortez, Colorado
History (2013 - 2018):
THA Corp. (dba The Herbal Alternative), was founded in 2012 by its current owners and is located in its original location in Cortez, Colorado.
THA began operations in 2013 as a vertically integrated Medical Cannabis Store and Cultivation, operating in a single building of 3,200 sq. ft.
When Colorado legalized recreational cannabis in 2012, THA invested to expand the building, adding 6,700sq. ft. of cultivation space in order to accommodate the growing demand for recreational flower.
THA is the only cannabis business in the area that has ever, and continues to offer, free tours of cannabis cultivation to the public every day at 2:00 pm.
(2019 - 2023):
Gross revenues grew to over $2.6M during these years, which allowed THA to further expand its cultivation operations, and to begin developing a craft cannabis flower brand: BUDSMITH
The expansion included:
• Construction of a new 6,580 sq. ft. cultivation building
• Development of new genetics
• Improvements in quality harvest yields
• Establishment of wholesale clients
However, during 2022 and into 2023, the cannabis market in Colorado underwent a severe correction:
1. High product demand (during previous Covid years) resulted in over production, causing severe price compressions in the wholesale market
2. Neighboring states legalizing also lowered demand, causing additional price compression
This extreme market conditions caused many cultivators to scale down, or completely close operations.
But the end of 2023, market prices began to stabilize, creating a unique window of opportunity for smaller operators who were able to survive.
THA is currently well-positioned to capitalize on this opportunity.
THA’s Retail + Cultivation Integration:
While cannabis flower is the leading product category sold in Colorado, it is primarily sold generically – meaning most flower is not sold under a brand identity.
Unlike manufactured products, which are prepackaged by the manufacturer, flower is typically packaged by each retail outlet, using their own packaging. Because there is no leading “brand” of flower product, there is ample opportunity to create recognition for a branded flower product in the state.
In addition, craft cannabis customers are always looking for the highest quality, and consistently want to sample new genetics.
Operating both a cultivation and retail outlet allows THA is able to gain direct customer fee back on which new strains to produce, and sell them through out the state on the wholesale market under a unique brand.
THA's BUDSMITH Brand:
There is an opportunity to establish a brand of craft cannabis, first in Colorado, and ultimately in other states.
With absolutely no promotional budget, and in less than a year, BUDSMITH is already selling in 27 stores in Colorado. We are only beginning to get established as there are over 200 stores in the state.
A BUDSMITH promotional campaign, during this correction in the market, would yield great results.
THA's Room for Expansion:
THA's current location and property is ideal for expansion and is already fully licensed.
THA's Proven Management:
THA is a turn-key operation, operated by seasoned and long-term management, who have been with the company since it’s early inception.
THA’s seasoned team has a proven track record for success in both retail store operations and cannabis cultivation. Systems and procedures in both areas have been standardized to produce excellent results in:
• Retail store merchandising and purchasing
• Customer retention and loyalty
• Cannabis genetics
• Increasing harvest production quality and yields
• Automation of systems for watering, feeding, harvesting and curing
With this experience and positioning, THA has the unique opportunity to capitalize on the current unusual market conditions of the industry by:
• Expansion of the BUDSMITH Brand within Colorado
• Strategic BUDSMITH brand social media and events
• Purchase of the property for continued expansion and investment
THA's Quality Cannabis Production:
THA’s current cultivation space of 13,400 sq. ft. produces 1,100+/- lbs of high-quality cannabis per year. An additional 2,000 sq. ft. of flower room is available for immediate use in Building 2, which would add another 401 +/- lbs for a total of 1,507 +/- lbs. per year.
An additional building on property (currently rented as office space) could be converted for an addition 3,200 sq. ft., as well room on the property to construct additional grow facilities when demand is created.
THA's Room for Growth - The Property:
The property contains 3 separate buildings which support mixed use of office, warehouse/industrial located on approximately 6.7 acres within the city limits of Cortez, with highway frontage, paved parking, and two separate entrances.
The improvements occupy approximately 20,000 +/- square feet of space with perimeter fencing in place.
All 3 buildings have adequate access and have been maintained. One of the buildings is currently used as combination office/light industrial (but could be also converted for cannabis cultivation.) The other two building are currently utilized for cultivation operations.
Full property evaluation and comps are available to qualified buyers. And owner financing is available for the property purchase.
This would be perfect for a current operator who wants to expand their cultivation in CO, hitting the ground running with immediate harvest/production to support their retail stores, or MIP product line.
Offered exclusively For Sale By Owners
Listing # 3049