Connecticut-based cannabis logistics investor NewLake Capital Partners has acquired two new industrial facilities and signed a NNN lease deal with medical marijuana dispenser, The Mint.
NewLake has acquired a 40,000 s/f industrial property in Palmer, Massachusetts, which The Mint, a multi-state cannabis operator based in Tempe, Arizona, will operate a as a licensed cultivation and processing facility.
NewLake and The Mint have also entered into a definitive agreement to purchase a property in Phoenix, Arizona for the build-out of a 125,000 s/f cultivation and processing facility. The deal is subject to final municipal approvals and is expected to close within the next 90 days.
The total investment of up to $25.1 million includes a purchase price for the two properties of $4 million and a commitment of $15.1 million in Tenant Improvement Allowances for construction, with the potential for $6 million in additional allowances for expansion in the future.
David Weinstein, NewLake Chief Executive Officer, said, “As operators of Arizona’s largest retail dispensary, The Mint has established itself as a unique brand that has built unwavering patient and customer loyalty, which has resulted in it seizing tremendous market share. As the state prepares for significant expansion fueled by the launch of its adult-use cannabis program, we are excited to help The Mint accelerate its growth in Arizona, while also supporting its expansion into Massachusetts, a state within which NewLake already owns five properties.”
Eivan Shahara, Co-Founder and CEO of The Mint, said, “Through strategic vision and smart operations, The Mint has established itself as a market leader in Arizona and an innovator in the industry. As we look to the future, NewLake presents the opportunity to align with a like-minded partner that supports our long-term expansion plans into other strategic high-growth states, including Massachusetts, while also cementing our footprint within our home state. We look forward to closing Phoenix and continuing to build our partnership with the NewLake team.”
The Mint operates state-of-the-art cannabis facilities across the country. The company offers a selection of flower/buds, edibles, and concentrates and introduced the nation’s first “cannabis kitchen” for consumables that includes cooking classes, pop-up cannabis dinners, and even cannabis caterers. The Mint also has a drive-thru at its Tempe, Arizona dispensary location and introduced a curbside pickup option for cardholders at its Mesa, Arizona dispensary.
Based in New Caanan, CT, NewLake is a leading provider of real estate capital to state-licensed cannabis operators through sale-leaseback transactions and third-party purchases, as well as funding for build-to-suit projects. NewLake owns a geographically diversified portfolio consisting of 24 properties across nine states with six tenants, comprised of 17 dispensaries and seven cultivation facilities.