Kalyx Development, A Private Real Estate Investment Trust Focused On The Cannabis Industry, Surpasses 600,000 Square Feet Under Management With The Acquisition Of Properties In Washington State And Arizona
NEW YORK, Nov. 14, 2016 /PRNewswire/ -- Kalyx Development, Inc. ("Kalyx"), a private real estate investment trust and pioneer in providing specialized real estate to the cannabis industry, announces the acquisition of two facilities in Washington State and Arizona. At a combined 348,000 square feet, these two acquisitions advance the company's holdings to over 600,000 square feet of cultivation and processing space, across seven buildings in four states.
The Washington State acquisition gives Kalyx control of the single largest multi-tenant facility in the state and is leased to 14 licensed and operating i502 tenants. The Arizona property, located in the greater Phoenix area, is leased to an established cultivator and dispensary operator, licensed under the Arizona State Medical Marijuana program. "We are excited to continue to expand our portfolio of cannabis leased facilities with the acquisition of these two great assets. The quality of the operators in place reflect the continued evolution of the industry and they join the strong tenant list of our existing facilities in Colorado, Washington and Oregon," said Co-Founder and President, Potter Polk. "These two deals follow Kalyx's charter of delivering value to the cannabis industry through transactions that are structured to allow entrepreneurial operators to make the most efficient use of their capital and grow their revenue base," said George M. Stone, CEO of Kalyx Development. Mr. Stone added, "Having spent decades in the real estate business where leverage was a common driver of returns, it's precisely the absence of traditional financing sources that has created the opportunity for Kalyx to provide value to the industry." "By creating a new vertical within the industrial sector and the cannabis market, Kalyx represents a unique opportunity for investors to benefit from risk appropriate exposure to the complex and rapidly evolving cannabis industry. The unparalleled combination of real estate and cannabis expertise, has enabled Kalyx to build a national footprint, thereby sagaciously growing shareholder value. The winning combination, as we see it, is employing a value-oriented approach to real estate acquisitions such that we amass a portfolio of properties with a reasonably low cost basis and high residual value, while carefully vetting and leasing to operators who are truly best-in-class," concluded Mr. Stone.