Power REIT Purchases Greenhouse Cannabis Cultivation In California For $7.7M

Power REIT PW has obtained a greenhouse cannabis cultivation facility in California for $7.685 million.

The Old Bethpage, New York-based real estate investment rrust purchased a 37,000 square-foot property in Riverside County for $2.685 million in cash and some 192,308 shares of Power REIT's Series A Preferred Stock at $26 per share.

The asset is leased to Canndescent.

In addition, the lease secures a straight-line annual rent of roughly $1.07 million.

"This transaction demonstrates Power REIT's ability to source and close accretive real estate acquisitions that we believe should result in the creation of significant shareholder value," David Lesser, Power REIT's Chairman, and CEO said Thursday.

Besides debut in the California market, the transaction helped Power REIT team up with Canndescent, a "sophisticated cannabis operator with premier brands and significant customer loyalty," Lesser continued.

Canndescent founder and CEO Adrian Sedlin shared Lesser's enthusiasm regarding the new collaboration, adding they are "exploring additional pipeline and business opportunities that could be mutually beneficial to us and Power REIT."

Over the last month, Power REIT has been purchasing additional properties in Colorado, including a 4.3-acre property in Ordway leased by The Apotheke, and two parcels spanning 2.37 acres and 2.09 acres, respectively, in Crowley County.