PEABODY – Police shut down a “sophisticated marijuana grow operation” at two homes in Peabody, arresting three relatives and recovering plants worth an estimated $500,000.”Do you know the whole residence has an overwhelming odor of fresh marijuana?” Peabody Police Officer David Murphy asked a defendant, according to Murphy’s report. “Yes,” one of the defendants replied. “It’s kind of hard to miss.”Justin Damico, 21, of 27 Elaine Ave., and John Damico, 35, of 112 Margin St. #1, were arrested and each charged with possession with intent to distribute Class D drugs; conspiracy to violate drug laws; possession of an Infernal I Machine; possession with intent to distribute Class C drugs; possession of a large capacity feeding device; possession of Class D drugs; and improper storage of a firearm.Joseph Damico, 44, of 27 Elaine Ave., was arrested and charged with possession of Class D drugs; conspiracy to violate drug laws; possession with intent to distribute Class D drugs; and possession with intent to distribute Class C drugs.Justin Damico is the nephew of John and Joseph, who are brothers, according to court documents.Each defendant pleaded not guilty to the charges in Peabody District Court Tuesday.Peabody Police, Saugus Police and members of the Drug Enforcement Administration and Bureau of Alcohol, Tobacco, Firearms/Explosives raided two homes in Peabody at midday Monday.Police found “an elaborate marijuana cultivating operation” in the basement and a “chandelier-like” drying rack hanging from the ceiling of a bedroom at 112 Margin St.Police also reported finding 11 large-capacity ammunition feeders for guns, three cakes of suspected hashish, three explosive devices; more than 160 marijuana plants, an unsecured handgun; and a large amount of drying marijuana.Police also raided 132 Winona St. where they found 333 marijuana plants and electric bills addressed to John Damico.”Approximately five hundred plants were confiscated during the combined seizures, potentially having a ?street value’ totaling in excess of five hundred thousand dollars,” Peabody Police announced in a press release Tuesday.Judge James Barretto ordered $100,000 cash bail for Joseph Damico, $75,000 cash bail for John Damico, and $25,000 cash bail for Justin Damico, according to court documents. All three are scheduled to return to court June 3.