A New York medical marijuana company is dipping its feet into real estate.
Columbia Care purchased a 34-acre site in Long Island to grow medicinal marijuana for $42.5 million in cash and stock, according to Crain’s. The site includes 740,000 square feet of operational greenhouse space.
The Long Island site will produce newly approved cannabis forms, including the flower, according to Crain’s.
Columbia Care operates 87 dispensaries in 11 states and Washington, D.C., and has four New York locations. It has more than two dozen locations for cultivating and manufacturing pot, including one in Rochester.
In 2020, the company raked in close to $198 million in combined revenue, and has projected up to $530 million in combined revenue in 2021.
New York’s medical marijuana industry is expecting a boom in business after the state legalized recreational marijuana this year. The new regulations will allow medical marijuana companies to expand into the recreational space.
By 2023, the market for cannabis in New York state is estimated to be worth $4.6 billion a year, with about 350 retail licenses expected to be issued once a regulatory framework for recreational cannabis is in place, according to a report by MPG Consulting prepared for the New York Medical Cannabis Industry Association.
[Crain’s] — Keith Larsen