Power REIT To Expand Its Cannabis Facilities In Colorado
After getting $15.5 million in debt financing, Power REIT (NYSE-AMEX: PW) set aside a chunk of that cash for acquisitions.
Today, it’s starting with a new cannabis cultivation facility in southern Colorado.
The property, dubbed Maverick 5, spans 5,040 square-feet and, so far, costs the company $490,000.
The Maverick Property was originally purchased for $150,000.
Power REIT put an additional $340,000 into the project to build 5,040 square feet of greenhouse space.
The deadline for project completion is mid-July.
“We are pleased that the initial Maverick 5 expansion is proceeding ahead of schedule, and we are able to quickly add an expansion to meet our tenant’s evolving business needs with additional greenhouse cultivation space,” Power REIT’s Chairman and CEO David Lesser said.
The company decided to proceed with the construction of an additional greenhouse bay to meet the tenant’s intention to populate the facility with cannabis plants, added Lesser.
The New York-based real estate investment trust is currently managing three additional greenhouse projects in the same area, including Maverick 1, Maverick 14, and Sherman 6.
In total, the company anticipates building 46,080 square-feet of greenhouse space and 14,960 square-feet of head-house/processing space by the period between mid-May 2020 and mid-July 2020.
Other companies in the space are also expanding. Earlier this year, Sacramento-based Vibe Bioscience Ltd.’s (CSE: VIBE) subsidiary purchased a 13,500 square-feet cannabis cultivation facility in Crescent City, California.
Meanwhile, cannabis company Grassroots Cannabis, expanded its Maryland-based cultivation center last week by doubling its footprint to 55,000 square feet.
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