NY Cannabis Real Estate Company Lands $25 Million

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Kalyx Development, a Manhattan real estate company that leases properties to indoor cannabis growers and also provides consulting services for property renovations, announced Friday that it has closed a $25 million round of equity funding.

The company owns properties that are either already fully leased or are in the process of being leased to cannabis growing operations in Colorado, Washington and Oregon. Kalyx also assists in financing infrastructure upgrades.

According to a recent report by the CBRE Group, more than 3.7 million square feet of property are used for marijuana cultivation, production, distribution and retailing in Denver alone. As the marijuana industry grows and legalization spreads, the industry’s real estate footprint could top 100 million square feet in the United States by 2020.

In August, Kalyx filed notice with the U.S. Securities and Exchange that it had would try to raise $50 million in equity financing, and at the time had raised %18.37 million.

Kalyx aims to be a specialist in cannabis growing sites, similar to how other property owners might specialize in data centers or self-storage facilities.