Cannabis REIT Acquires Illinois Properties, Expands Partnerships With PharmaCann, Grassroots
The company said it completed a sale-leaseback transaction with PharmaCann for a property in Dwight, Illinois.
The purchase price was $18 million excluding transaction costs.
IIP signed a triple-net lease agreement for the property with PharmaCann, which plans to continue to run the property as a licensed cannabis cultivation and processing facility.
PharmaCann is expected to make tenant improvements, including an 18,000-square-foot expansion, for which IIP said it will provide reimbursement of up to $7 million.
“We have been the preferred real estate capital partner for PharmaCann since our initial acquisition and lease of PharmaCann’s New York cultivation and processing facility in 2016,” Paul Smithers, president and CEO of IIP, said in a statement.
“In the past three years of our relationship, PharmaCann has made tremendous strides in executing on its business plan and has developed a tremendous reputation for the quality of its products and strength of its team of dedicated employees throughout the organization. “
Innovative Industrial Properties finalized a sale-leaseback transaction with a subsidiary of GR Companies Inc., or Grassroots, for a property in Litchfield, Illinois.
The purchase price for the 70,000-square-foot industrial space was $10.5 million.
IIP signed a triple-net lease agreement for the property with Grassroots, which plans to continue to run the property as a licensed cannabis cultivation and processing facility.
Grassroots is expected to complete some tenant improvements, including a planned 50,000-square-foot expansion, for which IIP is expected to provide reimbursement of up to $17.7 million.
IIP shares were trading 4.45% higher at $75.87 at the time of publication.
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