NewLake Capital has acquired a 58,500 square-foot industrial property in East Hartford, Connecticut and entered into a long-term triple net lease with an affiliate of C3 industries Inc. NewLake's investment will be $16 million, consisting of a purchase price of $4 million and a $12 million Construction Allowance to retrofit the former cold-storage facility. This will be NewLake's second transaction with C3, having partnered with the company on their cultivation facility in Missouri.
"We are excited to announce this transaction and expand our relationship with our partners at C3 – a company that has proven their ability to grow with discipline, becoming profitable executing in competitive, open markets like Michigan, where the cultivation and manufacturing of high-quality cannabis products are at the center of its business plan," said Anthony Coniglio, NewLake's President and Chief Executive Officer. "This transaction demonstrates our underwriting focus on quality properties in limited licensed states and on transactions with strong property level cash flows. We look forward to C3 broadening its footprint in Connecticut, a market that is currently in short supply of product."
"We are proud to once again partner with NewLake Capital Partners on our new cultivation and processing facility in Connecticut," said Ankur Rungta, CEO and cofounder of C3 Industries. "This new facility will feature specialized equipment and a controlled environment designed to produce the highest-quality indoor cannabis flower and manufactured goods and will play an important role in serving the needs of the growing Connecticut cannabis market. By developing this facility, we plan to not just produce cannabis, but to also drive economic development and job creation in the local community as well as the broader state."
For more information:
NewLake Capital
www.newlake.com