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Bonsai Cultivation will continue growing at 1955 S. Quince St. through its lease expiration date in 2033. (Courtesy Don Ball)
Don Ball is rolling up more cannabis properties.
The Texan, who runs the industrial real estate firm Kovak & Co., recently bought a 42,000-square-foot marijuana facility at 1955 S. Quince St. for $7.8 million, he told BusinessDen.
The tenant is local cannabis wholesaler Bonsai Cultivation, which, according to its website, has sold over 50 tons of pot to 400 Colorado dispensaries since sprouting up in 2015.
Bonsai’s lease runs through 2033, Ball said. He bought the property, about 2 acres, from a seller that paid $7.7 million for the land in July 2019.
“We’re at the low end of the historic price range,” Ball said of the industry. “But it’s like if you buy stocks when they’re down, a lot of times they come back up.”
According to the Colorado Department of Revenue, the average price for a pound of bud is $655, down from a recent high of about $1,300 in October 2021. State tax revenue has also dropped each of the past four years and is tracking to do the same in 2025.
“I think the tendency over the next three or four years, aside from any legislative boost it might get, the tendency is for higher prices,” he continued.
The facility is the second Denver marijuana plant for Ball. In October, he purchased Green Dragon’s 92,000 square-foot grow at 830 Wyandot St. for $11.5 million, according to public records.
Those are the only two grows for the Texan, whose $150 million portfolio covers nearly 60 properties across several states, he said.
Jumping into the Denver market was happenstance, Ball noted. A broker he often works with in Chicago recommended the Green Dragon facility to him, and he was intrigued by the opportunity for growth.
“There just seems to be a greater acceptance of the product,” Ball said. “If they legalize it (federally), that will be another boost to the value of the properties. For the size of my portfolio, though, this is probably as much concentration risk as I want to take.”
The purchase of a marijuana grow is abnormal during a time when owners continue to have issues selling the real estate.
“There are still a lot of operators and a lot of people going out of business,” said Jake Malman, a broker who was not involved in the sale of 1955 S. Quince St. “And it’s $10-15 a square foot in renovation costs needed to convert these to industrial.”
Bonsai Cultivation will continue growing at 1955 S. Quince St. through its lease expiration date in 2033. (Courtesy Don Ball)
Don Ball is rolling up more cannabis properties.
The Texan, who runs the industrial real estate firm Kovak & Co., recently bought a 42,000-square-foot marijuana facility at 1955 S. Quince St. for $7.8 million, he told BusinessDen.
The tenant is local cannabis wholesaler Bonsai Cultivation, which, according to its website, has sold over 50 tons of pot to 400 Colorado dispensaries since sprouting up in 2015.
Bonsai’s lease runs through 2033, Ball said. He bought the property, about 2 acres, from a seller that paid $7.7 million for the land in July 2019.
“We’re at the low end of the historic price range,” Ball said of the industry. “But it’s like if you buy stocks when they’re down, a lot of times they come back up.”
According to the Colorado Department of Revenue, the average price for a pound of bud is $655, down from a recent high of about $1,300 in October 2021. State tax revenue has also dropped each of the past four years and is tracking to do the same in 2025.
“I think the tendency over the next three or four years, aside from any legislative boost it might get, the tendency is for higher prices,” he continued.
The facility is the second Denver marijuana plant for Ball. In October, he purchased Green Dragon’s 92,000 square-foot grow at 830 Wyandot St. for $11.5 million, according to public records.
Those are the only two grows for the Texan, whose $150 million portfolio covers nearly 60 properties across several states, he said.
Jumping into the Denver market was happenstance, Ball noted. A broker he often works with in Chicago recommended the Green Dragon facility to him, and he was intrigued by the opportunity for growth.
“There just seems to be a greater acceptance of the product,” Ball said. “If they legalize it (federally), that will be another boost to the value of the properties. For the size of my portfolio, though, this is probably as much concentration risk as I want to take.”
The purchase of a marijuana grow is abnormal during a time when owners continue to have issues selling the real estate.
“There are still a lot of operators and a lot of people going out of business,” said Jake Malman, a broker who was not involved in the sale of 1955 S. Quince St. “And it’s $10-15 a square foot in renovation costs needed to convert these to industrial.”
“}]] Don Ball, who owns an industrial real estate firm in the Lone Star State, also bought Green Dragon’s 92,000 square-foot cultivation facility last fall. Read More
