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NewLake Invests $16M to Retrofit Cold-Storage Facility for Cannabis Cultivation

It will lease the Connecticut facility to C3 Industries.

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iStock/Baramee Temboonkiat

NewLake Capital Partners is acquiring a 58,500-square-foot industrial property in Connecticut and leasing it to an affiliate of C3 industries Inc, a multi-state, vertically integrated cannabis company headquartered in Ann Arbor, Michigan. NewLake plans to invest $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."

C3 currently has cannabis operations in Illinois, Michigan, Missouri, Massachusetts and New Jersey. The Connecticut facility will produce C3’s cannabis brands such as Cloud Cover, Galactic, and Habitat.

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