NewLake Capital Partners is buying and leasing back 10 marijuana retail stores in six states from Chicago-based Grassroots Cannabis in a deal valued at up to $19.7 million.
NewLake, which also is headquartered in Chicago, has closed on six of the sale-leaseback deals with Grassroots’ parent company, GR Companies.
The company plans to purchase the other four stores within the next 45 days.
NewLake is paying $15.5 million for the stores.
Grassroots, however, is expected to make $4.2 million in improvements to the properties, bringing the total deal to $19.7 million.
The portfolio consists of nine medical marijuana dispensaries and one adult-use cannabis store.
NewLake declined to identify the states where the stores are located.
Sale-leasebacks are an increasingly popular way for marijuana companies to raise instant cash.
However, most sale-leaseback deals are for large, industrial properties like cultivation centers and warehouses and not for smaller, retail stores.
This deal marks the third real estate acquisition by NewLake but the first with Grassroots.
Grassroots, meanwhile, is expected to soon become the property of Massachusetts-based marijuana giant Curaleaf.
Curaleaf reached an agreement last July to buy Grassroots for $875 million in stock and cash, and the deal is expected to close in early 2020.
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