NewLake Capital Acquires Properties in Six States and Enters into Long-Term Leases with Affiliates of Leading Multi-State Cannabis Operator Grassroots
CHICAGO, Feb. 19, 2020 /PRNewswire/ — 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 affiliates of GR Companies Inc. (Grassroots) for six of the ten properties within this portfolio located in six states, which comprise approximately 60,000 square feet of retail space. The Company anticipates the second closing for the four remaining properties to occur within the next forty-five days.
The total purchase price for the ten properties is approximately $15.5 million. The portfolio of ten retail dispensaries consists of nine medical and one adult-use locations across six states. Concurrent with the closing of the first six properties, NewLake entered into long-term, triple-net lease agreements for each property with an affiliate of Grassroots, which intends to continue to operate the properties as licensed dispensary facilities. Grassroots is expected to make certain improvements to the properties, for which NewLake has agreed to provide reimbursement of up to $4.2 million. Assuming full reimbursement for such improvements, NewLake’s total investment in the properties will be $19.7 million.
We are pleased to partner with Grassroots, one of the leading multi-state cannabis operators in the U.S. with a well-respected brand, consumer loyalty and operational expertise.
Anthony Coniglio, Chief Executive Officer of NewLake
Coniglio continued, “Our first closing with Grassroots falls in line with our core strategy of aligning ourselves with revenue generating properties in locations within limited license states that have long term visibility on the sustainability and growth of their operations. Grassroots is the third portfolio acquisition NewLake has made