Cannabis Lending Available up to 50% of the Asking Price
This dispensary is located on Sunset BLVD and has a Full-Absentee model currently in place. This business has been in operation for 10 years and grosses 9mil and nets 2mil.
Here we have an amazing opportunity to enter the most sought after industry in Los Angeles County. This dispensary is located on Sunset BLVD and has a Full-Absentee model currently in place. Everybody already knows Los Angeles is the Mecca of Cannabis in the whole world and this is where big business resides. This business is on track to do over $9M this year on just the dispensary storefront side.
Lastly they currently have a delivery retail license as well which allows them to deliver to the entire county of Los Angeles, there is over 10 Million people in the county. An average delivery service does between 150 and 200 deliveries a day, a really good one will do between 250 and 400 a day. Average ticket on deliveries are higher than storefronts, industry average is 110 per order. at 200 deliveries a day at the $110 average order, will provide an additional $8M in revenue per year which they have not started yet because they were just issued this license in April of 2018, and have not put this part of the business together yet.
This dispensary was also issued a cultivation and Distribution license as well which is in effect. They have a 1700 sq ft grow at the moment that generates additional revenue, this can be changed if you want to obtain a manufacturing license instead. Manufacturing has estimated first year estimated revenues being very conservative of around $6M to $8M the first year.
Licenses in Hand: Retail Storefront, Retail Delivery, Cultivation & Distribution
Can obtain a Manufacturing license but will need to put fire sprinklers and redoing walls to be fireproof.
Have all the above licenses in both Recreational and Medical Use
Wholesale Inventory- $250,000.00 Comes with the business
Total Space: 3,200 sqft (Retail-1,400 sqft Cultivation- 1,800 sqft)
Staff – 27 Employees
$14,000 a Month Rent (Long Term Lease is Available)
Business is off of Sunset BLVD, (Prime Location)
They have zero signage, which would increase the sales if you put the name of the business up and they have a spot on the post that is on the st with all the businesses names on them to market to cars driving by they have a spot on there that they have not yet utilized. 2 amazing opportunities for signage.
Over 16 parkings spots available in for all tenants, and there is ample st parking.
Has been in the same spot since 2006, (12 year operating business in the same location)
Only reason for selling one of the partners has a health issue and is calling an early retirement.
Team – This Dispensary has a team of 27, all women, staff that run the whole show. They do everything that even the owners would typically do for their own business. This business is 100% FULL absentee, and has 2 Supervisors with floor managers that take reigns of this well oiled machine. The owners words, and I quote,” I only come for about an hour once a week, and I feel like I am in the way when I am here, while the staff is running around non stop, because that is how busy it is all the time”.
In a 4 Mile radius there are 2 licensed storefronts. Both seemed very slow when we toured both facilities but the dispensary we are repenting and is for sale has between 275 – 350 people a day coming in and out of this place.
2017 – $7M Actuals
2018 – On pace to do $9M despite the new taxes and regulations of July 1rst , 2018.
2019- $27M – Projected Storefront $11M, New Delivery at 150 deliveries a day average at the $110 per order an additional $6M projected, Manufacturing $8M projected, Distribution $2M projected
2020- $32M projected
2021- $35M projected
2022 – Possible exit 2x Gross Revenue $70M
Evaluation of this Business –
This is an evaluation simply for Los Angeles because it is the Capitol of the World, for Cannabis the license paper value is much higher than every other city in the state.
Market Value for all Licenses (Retail Storefront, Retail Delivery, Cultivation, Manufacturing and Distribution and you have licenses for both Medical and Recreational is going between 5M to 5.5M for just paper.
2X Gross Revenue is Fair Market Value however there are plenty of sellers that try and sell their business on their own who want closer to 3 to 3.5Xs Gross Revenue because it is the “Cannabis Gold Rush, but 2X’s is very fair market value.
Asking Price: $16,500,000.00 (Plus 2% Buyers Fee Commission)
Must sign an NDA/Waiver and have proof of financials before any other detailed information is released.