Cannabis REIT NewLake Capital Partners, Inc. ( NLCP ) announced on Wednesday that it is acquiring a 58,500 square-foot industrial property in East Hartford, Connecticut. The company also said that it has entered into a long-term triple net lease with an affiliate of Michigan-based C3 Industries Inc.

NewLake's investment will be $16 million. The sum includes a purchase price of $4 million and a $12 million construction allowance to retrofit the former cold-storage facility.

The move represents NewLake's second transaction with C3, having partnered with the company on their cultivation facility in Missouri earlier.

Anthony Coniglio, NewLake's president and CEO, praised the move.

"We are excited to announce this transaction and expand our relationship with our partners at C3 – a company that has proven its 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," Coniglio said.

Ankur Rungta, CEO and co-founder of C3 Industries shared Coniglio's enthusiasm.

“We are proud to once again partner with NewLake Capital Partners ( NLCP ) on our new cultivation and processing facility in Connecticut," Rungta said.

See also: Cannabis REIT NewLake: YoY Increase In Q4 & FY 2023 Revenue Amid ‘Challenging Environment,’ CEO Says

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"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," Rungta continued. "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.”

Founded in 2018 by brothers Ankur and Vishal Rungta, C3 currently has cannabis operations in Illinois, Michigan, Missouri, Massachusetts and New Jersey.

The Connecticut facility will produce C3's premium cannabis brands such as Cloud Cover, Galactic, and Habitat.

A significant catalyst for NewLake Capital Partners ( NLCP ) and the entire cannabis sector is the recent news that the U.S. Drug Enforcement Administration (DEA) will move to reclassify marijuana as a less dangerous drug.

Cannabis rescheduling seems to be right around the corner. Want to understand what this means for the future of the industry? Hear directly for top executives, investors and policymakers at the 19th Benzinga Cannabis Capital Conference, coming to Chicago this Oct. 8-9. Get your tickets now before prices surge by following this link.

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