Poseidon Investment Management is putting more chips on the Garden State cannabis table. The San Francisco-based firm just dropped another $1 million into a New Jersey dispensary, backing Herb Haus in Carlstadt—its third stake in the state in just three months.
This fresh injection of cash brings Poseidon’s New Jersey cannabis investment total to roughly $3 million since mid-December. Managing Director Patrick Rea confirmed the deal and expressed big hopes for the newcomer, which is strategically planted near the Meadowlands and MetLife Stadium.
Betting on Foot Traffic and Location
Carlstadt isn’t exactly on every cannabis map—yet. But Poseidon seems confident it will be soon.
Herb Haus, the new shop on the block, is gearing up to serve crowds heading to major events just a stone’s throw away. Think concerts, NFL games, and the whole Meadowlands weekend warrior scene. That foot traffic was clearly a key factor in Poseidon’s decision.
“This is an exceptional location,” said Rea. “We expect Herb Haus to become the highest performing store in the tri-state area.”
That’s a bold call, but Rea’s optimism isn’t unfounded. Carlstadt is only a few miles from Manhattan, and with major venues around the corner, the customer pool isn’t just local—it’s regional.
Social Equity at the Center
Herb Haus isn’t just another shiny storefront. It’s a social equity licensee—part of New Jersey’s push to level the playing field in a historically lopsided industry.
Founder Joe Kanegieser secured backing through the New Jersey Economic Development Authority’s Cannabis Equity Grant Program. That means state funds and private capital are both in play, giving the store a runway to build out, hire, and scale.
This dual support—public and private—is becoming more common in states trying to right the wrongs of past cannabis enforcement.
One sentence. Just to catch a breath.
New Jersey’s Cannabis Numbers Are Climbing
New Jersey isn’t moving slow, either. Legal sales are booming despite stubborn local opposition.
According to the state’s Cannabis Regulatory Commission, marijuana sales jumped 25% in 2024. That’s despite a jaw-dropping stat: nearly two-thirds of New Jersey’s 564 municipalities have opted out of allowing adult-use cannabis retail.
That means 376 towns have said no thanks. Still, business is booming in the remaining third.
Here’s a quick look at what the numbers say:
| Metric | Value |
|---|---|
| Total NJ municipalities | 564 |
| Opted-out towns | ~376 |
| % Opted-out | ~67% |
| 2024 Sales Growth | +25% |
Poseidon’s not waiting around for towns to change their minds. They’re picking their spots and pouncing when the opportunity makes sense—foot traffic, underserved areas, and strong equity credentials all seem to be part of their playbook.
Poseidon’s Growing Garden State Portfolio
Herb Haus isn’t Poseidon’s first rodeo in New Jersey. It’s their third.
Back in December, the firm invested around $1 million each in two other retailers: Blkbrn and Dogwood Green. Both were startup deals, covering build-out and launch costs.
So what’s the pattern here? Three things:
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Early stage shops with strong locations
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Local operators backed by equity programs
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A long-term bet that New Jersey will loosen up further
Rea’s team appears to be banking on the idea that consumer demand will outpace political reluctance—and so far, that theory is holding up.
One more short sentence, because why not.
Local Bans Still Slow Growth
But not everything’s rosy. The wave of local opt-outs is still dragging on industry growth. It’s not just a New Jersey problem—it’s happening in California and New York, too.
Municipal bans can choke off access in key areas, limit revenue, and dissuade new entrants. In a nutshell, it’s a bottleneck. And it’s been a consistent hurdle since adult-use markets began rolling out nationwide.
Poseidon seems unbothered. Or at least, they’re moving around the roadblocks. Instead of pushing into resistant towns, they’re focusing on high-traffic, high-visibility areas where the red tape’s already been handled.
That means the Carlstadts of the world—small but mighty.