NewLake Capital Partners announced that Hero Diversified Associates, Inc. ("HDAI") has sold Calypso Enterprises ("Calypso"), which is a NewLake tenant, to Canvas Acquisition Corporation, LLC ("Canvas").
In connection with the closing of the sale of Calypso and under the terms of the revised lease agreement, NewLake has agreed to provide up to $3 million in tenant improvements and has received a six-month rent escrow. NewLake also provided Canvas the option to purchase the property at NewLake's cost basis from December 1, 2024, through December 31, 2025.
"Interest during Calypso's sale process demonstrates the quality of the facility and the business opportunity in limited license states, particularly Pennsylvania, where adult use is on the horizon. Canvas will bring brands, products, and relationships to the Pennsylvania market, significantly improving the competitiveness of our tenant," stated Anthony Coniglio, NewLake's President and Chief Executive Officer. "Additionally, the acquirers' financial profile as the new lease guarantor is improved from HDAI. We are appreciative of our partners at HDAI and are excited to work with our new partners at Canvas."
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