NewLake Capital Partners, Inc. (“NewLake” or the “Company”), an independent investment vehicle focused on acquiring a diversified real estate portfolio of industrial and retail properties in the cannabis industry, today announced the closing of its sale-leaseback transactions with PharmaCann Inc. (“PharmaCann”) for three of four properties within the acquired portfolio. The three properties are located in two states, and the Company anticipates the second closing for the one remaining property to occur within the next sixty days.
The total purchase price for the four properties is approximately $3.4 million and consists of three retail dispensaries in Massachusetts and one in Pennsylvania. Concurrent with the closing of the first three properties, NewLake entered into long-term, triple-net lease agreements for each property with PharmaCann which intends to operate the properties as licensed dispensary facilities. PharmaCann is expected to make certain improvements to the properties, for which NewLake has agreed to provide reimbursement of up to $2.8 million. Assuming full reimbursement for such improvements, NewLake’s total investment in the properties will be $6.2 million.
“We are excited to add PharmaCann to the NewLake family of tenants and we look forward to working with their team on the build out of these important retail locations. We expect these limited-license jurisdictions in Massachusetts and Pennsylvania to experience significant growth, with Massachusetts alone expected to eclipse $1 billion in adult-use sales by 2021 and Pennsylvania evaluating approval of adult use sales,” said Anthony Coniglio, Chief Executive Officer of NewLake.
Brett Novey, Chief Executive Officer of PharmaCann, commented, “NewLake was able to move quickly and efficiently to become a reliable, long-term real estate capital partner. The team’s knowledge and understanding of our business and real estate needs was impressive and we appreciate their partnership on this important transaction for our company. We look forward to evaluating further partnership opportunities.”
About NewLake Capital Partners, Inc.
NewLake is an independent investment vehicle focused on acquiring a diversified real estate portfolio of industrial and retail properties in the cannabis industry to be leased to state-licensed operators in limited license states. NewLake has acquired a portfolio from coast-to-coast with tenants across the supply chain including cultivation, manufacturing and retail. NewLake intends to elect to be taxed as a real estate investment trust for U.S. federal income tax purposes once it meets all applicable criteria. For more information please visit www.newlake.com.
PharmaCann Inc. is one of the largest, privately held, vertically-integrated cannabis companies in the United States, providing safe, reliable, and high-quality cannabis products to people in both medical and recreational markets. PharmaCann currently operates in six states and holds licenses to operate up to 5 cultivation centers and 26 dispensaries within its geographic footprint. For more information about PharmaCann, please visit www.pharmacann.com.