Innovative Industrial Properties Inc. (NYSE:IIPR) has completed the purchase of a 266,000 square feet of industrial space in Saxton Pennsylvania.
The property was purchased at cost of around $13 million excluding the transaction costs. After closing the acquisition the company signed a long-term lease agreement with a Green leaf Medical LLC subsidiary which will operate on the property as a licensed medical marijuana growing and processing facility. So far Green Leaf Medical has redeveloped around 103,000 square feet of the space for cultivation and processing of medical-use cannabis while the remaining 163,000 square feet of industrial space will remain available for redevelopment in the future.
Innovative Industries Properties is the only real estate investment trust that is focused in the medical-use cannabis industry through partnerships with experienced cannabis firms. It acts as a source of capital through the acquisition and leasing of real estate properties as well as by offering real-estate capital solutions.
Paul Smithers the CEO and President Innovative Industries Properties said that the company was delighted to add Green Leaf Medical to its growing list of tenants. He added that the multi-state operator had achieved significant success in Maryland within a short span and it is currently replicating the same model in other states including Pennsylvania. Paul said that the company was pleased to serve as a capital source to help Green leaf in its expansion initiatives across the Northeast.
Green Leaf has cannabis operations such as cultivation, extraction as well; as retail business as a licenced cannabis operator in various states such as Ohio, Maryland, Virginia and Pennsylvania. In 2018 Green Leaf’s Maryland facility generated more than $9 million in sales under its gLeaf brand with a positive net operating income in over 20% of sales. Since its inception Green Leaf has raised $24 million and it is among the 25 licensed growers and processors in Pennsylvania.
Green Leaf Medical CEO, Phil Goldberg stated that the lease back transaction with Innovative Industrial Properties is an optimal solution for the company that will help in unlocking the amount invested in the facility for redeployment in the multi-state operating platform.
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