Innovative Industrial Properties Signs Long-Term Lease With Green Thumb Industries

The cannabis REIT Innovative Industrial Properties, Inc. IIPR said Tuesday it has closed on a sale-leaseback transaction with Green Thumb Industries Inc. GTII GTBIF for its Pennsylvania facility.

Innovative Industrial Properties will buy the Danville facility for $20.3 million less transaction expenses. 

The REIT will reimuburse Green Thumb in the amount of up to $19.3 million for certain enhancements of the property to be made by GTI for the purpose of increasing production capacity.

With full reimbursement, the company’s total investment in the property will reach $39.6 million, according to Tuesday's announcement. 

“GTI has distinguished itself as one of the preeminent cannabis operators in the United States, and we are thrilled to be a trusted real estate partner for their continued expansion in Pennsylvania to meet the tremendous patient demand there,” Innovative Industrial Properties CEO Paul Smithers said in a statement.

“With GTI’s breadth and depth of cannabis product offerings and dedication to patient experience and right to well-being, we believe GTI will continue to make a tremendous and growing impact on thousands of patient lives.”

Pennsylvania is a key market for GTI, chief strategy officer Jennifer Dooley told Benzinga. 

"This long-term partnership with IIP offers an effective capital solution for our strategic growth and capacity expansion initiatives in the state."

Innovative Industrial Properties shares were trading 0.4% higher at $80.35 at the time of publication, while GTI shares were up 2.56% at $8.64. 

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