Marijuana REIT NewLake invests $16M in C3 Industries cultivation operation

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NewLake Capital Partners is investing $16 million to acquire and retrofit a 58,500-square-foot industrial property in East Hartford, Connecticut, that will be leased to C3 industries, a Michigan-based marijuana multistate operator.

According to a news release, the Connecticut-based marijuana real estate investment trust (REIT) entered into a long-term, triple net lease with an affiliate of C3, High Profile Cannabis Shop.

High Profile Cannabis Shop operates 21 outlets in Illinois, Massachusetts, Michigan, Missouri and New Jersey.

Under a triple net lease, a tenant pays all property expenses, including real estate taxes, building insurance, maintenance, rent and utilities.

The Connecticut facility will make products for vertically integrated C3’s premium cannabis brands such as Cloud Cover, Galactic and Habitat.

NewLake’s investment consisted of a $4 million purchase price and $12 million in renovations to the former cold-storage facility.

“This transaction demonstrates our underwriting focus on quality properties in limited licensed states and on transactions with strong property level cash flows,” NewLake CEO Anthony Coniglio said in a statement.

The REIT invested $34 million into C3’s Missouri cultivation operation in 2022.

NewLake’s portfolio includes 32 cultivation facilities and stores leased to single tenants under triple net leases.

The REIT went public in 2021 and trades as NLCP on the U.S. over-the-counter markets.