Cannabis REIT Acquires Virginia Property, Signs Lease With Green Leaf Medical

Innovative Industrial Properties, Inc. IIPR said Wednesday it has finalized the acquisition of a property in Richmond, Virginia, which should account for 82,000 sq. feet of industrial space. The purchase price for the property was set to around $11.8 million without transaction expenses.

In addition, the company signed a long term, triple-net lease agreement with a Green Leaf Medical subsidiary, which should run the property as a licensed cannabis cultivation, processing and dispensing facility.

Innovative Industrial Properties will also grant compensations for the completion of the property’s development in the amount of up to $8 million. With full compensation, the company’s investment in the property will reach $19.8 million.

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“We are excited to team again with multi-state operator Green Leaf Medical as our tenant partner in Virginia,” Paul Smithers, President and CEO of IIP said in a statement. “Green Leaf Medical continues to execute well on its business, dramatically expanding patient access in the Northeast. We look forward to working closely with them as they complete development of this state-of-the-art facility to meet the patient demand of the greater Richmond area.”

Philip Goldberg, CEO of Green Leaf Medical also commented on the deal.

“Partnering again with IIP allows us to free up our capital and redeploy across our multi-state operating platform, including our anticipated launch of operations in Virginia this year. Our Richmond location will serve patients directly through our onsite retail dispensary and will act as a hub for our statewide home delivery service," he said.

Innovative Industrial Properties closed Wednesday session 1.91% lower at $82.72 per share.