Cannabis real estate investment trust Innovative Industrial Properties Inc (NYSE: IIPR) is strengthening its presence in Pennsylvania through the acquisition of a property in the city of Saxton.
What Happened
The property includes two buildings with a total footage of 266,000 square feet. The value of the deal was $13 million excluding transaction costs.
Innovative Industrial Properties entered into a long-term triple-net lease agreement with a subsidiary of Green Leaf Medical, which will use the property as a licensed medical cannabis cultivation and processing facility.
Why It's Important
For Green Leaf Medical, the facility in Saxton is the first in Pennsylvania where the company holds one of 25 licenses for growing and processing. Its facility in Frederick, Maryland generated over $9 million in sales in the first 11 months of operations.
Through the sale leaseback transaction with Innovative Industrial Properties, Green Leaf Medical managed to unlock the capital invested in the facility and redeploy it across its multi-state platform.
The addition of the new facility increases the number of properties held by Innovative Industrial Properties to 21. Last month, the company acquired another property in Pittsburgh and signed a long-term lease agreement with Maitri Genetics.
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