Power REIT Buys Greenhouse Cannabis Cultivation Property For $1.8M

Power REIT PW confirmed Monday the acquisition of two properties in Colorado.

The move comes months after the purchase of another Colorado property, dubbed Maverick 5.

The Old Bethpage, New York-based real estate investment trust obtained a total of 4.21 acres in Crowley County via PropCo, its wholly-owned subsidiary.

Under the $1.84 million deal, Power REIT opted to provide funds for the build-out of a greenhouse and processing facility spanning roughly 21,732 square feet, the company noted.

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Simultaneously, PropCo sealed a 20-year triple-net lease with The Grail Project LLC, poised to operate a cannabis cultivation facility. Following the initial term, the lease has four renewal options, each for a period of five years.

In addition, Grail Project agreed to cover all expenses concerning the property.

“We continue to deploy capital on a highly accretive basis and in a manner that supports our investment thesis of investing in sustainable greenhouse properties,” Power Reit chair and CEO David Lesser said in a statement. “We remain enthusiastic about expanding our greenhouse portfolio in Colorado, which should compete favorably with indoor cultivation facilities, while providing real estate for Gail Project to grow high-quality cannabis at a competitive cost."

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