Marijuana is a booming industry right now as more and more countries and states legalize both medical and recreational use. Businesses like Badass Glass smoke shop have seen lots of success as the gross sales of marijuana products continue to increase year by year. So, now may just be the perfect time to get into the industry.
No, it’s not a typo nor fat finger error. The 7,640-square-foot building on the southwest corner of 2nd and Jessie Streets in downtown San Francisco has been priced at $25 million or nearly $3,275 per square foot. Considering the location and region, this price makes sense. San Francisco is known to be a very expensive part of the world to live in, and buying property of this size in this part of town does not come cheap because of this. For many interested parties however, this would still be a really good opportunity to get some prime real estate.
But the asking price includes…the five-year-old Flower Power medical cannabis dispensary (MCD) on the first floor of the building at 70 Second Street, so if anyone is looking for a new business and looking to get into the cannabis industry, this is the perfect opportunity for you, especially with equipment from www.trimleaf.com so you can start growing your own product.
As a point of reference, a similar sized and type of building at 353-359 Kearny Street has been on the market for nearly a year at $770 per square foot. We’ll let you back into an implied value of the dispensary. However, getting it set up and ready to run shouldn’t be too difficult. After all, nowadays companies like baked link exist who can help set up the more classic business end of things, leaving any potentially interested parties able to focus on procuring product and sourcing other materials for sale.
It’ll be interesting to see what happens to this one!
Anyone know if any bank would lend on this? Would assume not.
Sounds like whoever set the price was sampling the product downstairs (yes, a “high” price it is!)
High price indeed. Certainly asking for a lot of green for this one. Not sure how many offers will come rolling in.
Financing is the problem: too risky for a loan too much for a single buyer (a sensible one, anyway)….maybe a joint venture ??
Who would want to take a hit on this? I’m going to have to pass.
It is just plain greed, to say it in a blunt way.
Sure you could finance through a joint venture, but I’d still worry about my investment going up in smoke on a project like this.
Sure, you probably won’t be able to get a loan from JPMorgan Chase, but financing a deal like this is one reason why shadow banking exists. And there’s so much irrational exuberance surrounding legal and quasi-legalized marijuana businesses over the past few years that I have no doubt an enthusiastic buyer will emerge with financing provided by someone. Failing that, there’s always the option of a 100% equity deal, which the buyer could probably crowd-source from potheads.
Not saying the seller’s going to get $25M, though.
This must be the first of its kind. But with CA pot crop supply already at 8 times the demand, the asking price for the business + building seems out of range.
I know the Kearny St. building and it took several years to empty out the office tenants and take it down to the studs. Originally thought it was going to be a tech space but didn’t see any movement inside. If the price is right and office space could be converted to partial living space, maybe WeWork/Welive would be interested.
About a year ago it was for sale at $12MM or so, now $25MM….HIGH is an understatement.
Amewsed: that 8 times supply over demand is already (and has been for a while) supplying markets outside California. I’m from Humboldt–this is not news.
Regardless, how that translates into a $25 million asking price for this building is a mystery.
I don’t know if it’s overpriced, but there’s a lot of money to be made with weed. (Sorry, ‘medical’ cannabis.)