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Power REIT Buys 2 Properties In Colorado For 'Cultivation Complex'

October 16, 2020 1:15 pm
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Power REIT (NYSE:PW) has acquired two Colorado parcels.

The Old Bethpage, New York-based company purchased properties in Crowley County for a total of $150,000.

The parcels span 2.37 acres and 2.09 acres, respectively.

Powe REIT also entered into a triple-net deal with Monte Fiore, an operator of cannabis cultivation facilities.

Under the agreement, Monte Fiore is obliged to compensate for all expenses related to properties, such as maintenance, insurance, and taxes.

The deal has a term of 20 years with two five-year renewal options for the tenant.

Power REIT opted to provide roughly $2.9 million for building a 33,744 square foot greenhouse and processing facility.

Moreover, the REIT also has an option to purchase two additional parcels in the vicinity of the acquired properties, spanning around 2 acres each.

Together with its affiliates, Monte Fiore operates a greenhouse cultivation facility in southern Colorado, spanning 36,000 square-feet, as well as a hemp greenhouse and 400-acre outdoor farm.

Power REIT chairman and CEO David Lesser described a plan to create a "state of the art" greenhouse cultivation complex.

Monte Fiore CEO Jared Schrader opted to “pursue growth plans in Crowley County based on the favorable environment and infrastructure.”

Earlier this year, Power REIT expanded its footprint in Colorado by constructing Maverick 5 – a cannabis cultivation facility – spanning 5,040 square-feet.

Initially, the company bought the property for $150,000 and invested an additional $340,000 into the project to build a new greenhouse space.

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