Curaleaf Holdings, a cannabis operator in the United States, has signed a sale-leaseback agreement with Freehold Properties for six of its properties throughout New Jersey, Florida and Massachusetts.
Freehold Properties, which is a Las Vegas-based newly-formed real estate investment firm focused on cannabis properties, said on Tuesday it will acquire the buildings for $28.3 million.
The properties include a cultivation/production facility and retail dispensary in Bellmawr; a retail dispensary in Fort Pierce, Florida; a retail dispensary in Daytona Beach, Florida; a cultivation/production facility in Webster, Massachusetts; and a retail dispensary in Provincetown, Massachusetts.
The deal, which is expected to close at the end of this month, is comprised of $25.5 million in cash and $2.8 million of Freehold common stock.
Freehold said it will lease the properties to Curaleaf in accordance with a long-term, triple-net lease. It will also have the right of first offer to purchase additional Curaleaf properties as its “preferred real estate partner.”
Curaleaf said the funds from the properties has covered its initial investment plus all tenant improvements made to date. It intends to use the proceeds for various expansion efforts, including financing new operational facilities and construction projects.
“When we formed Freehold to capitalize on the growing need for capital among the leading multi-state operators in the U.S, we intentionally focused on creating relationships with best-in-class and well-capitalized companies,” Don Brain, co-founder, chairman and CEO of Freehold Properties, said. “Curaleaf has established a large footprint in desirable markets and locations as the leading vertically integrated cannabis operator in the country. We are pleased to begin executing our growth strategy with such a strong operating partner, and we look forward to working closely with them to meet their future capital needs.”