Parallel Sells Pennsylvania Warehouse To Cannabis REIT IIP For $68M, Signs Lease Agreement
Cannabis company Parallel confirmed Friday it has sold its Pittsburgh, Pennsylvania warehouse to an affiliate of a cannabis REIT, Innovative Industrial Properties, Inc. (NYSE:IIPR), for roughly $68 million.
In relation to the sale, both companies also signed a long-term lease agreement.
Parallel noted it plans to use the collected proceeds to finalize the original construction of the warehouse that will serve as goodblend’s state-of-the-art cannabis cultivation and processing facility. The Pennsylvania facility expects to launch its activities in the middle of this year.
Upon finalizing phase one of the renovation, the warehouse will have around 124,000 sq. ft. of available space for Parallel, and an extra 36,000 sq. ft. for further expansion.
goodblend is Parallel’s retail brand and one of eight vertically integrated clinical registrants in Pennsylvania. It obtained a license via collaboration with the University of Pittsburgh School of Medicine last year.
This year, in addition to the opening of its facility, goodblend plans to undertake operations at its two retail facilities in Pittsburgh and Erie and will then make an effort to open four additional retail stores.
"This marks the fourth sale-leaseback transaction we've conducted with IIP, representing total proceeds of approximately $195 million in deal value to date,” said William "Beau" Wrigley Jr., chairman and CEO of Parallel. “The collaboration with IIP supports our growth in Florida, Texas, and now Pennsylvania and helps us advance our mission to improve the quality of life through cannabinoids.”
Elizabeth Conway, regional president of Parallel and goodblend Pennsylvania, said they are already hiring for the hundreds of new jobs they're expecting to create in Western Pennsylvania. “We have also begun local job recruitment initiatives and expungement programs to support inclusion and economic empowerment within the Commonwealth. Wherever possible, we focus on hiring local and outreach and training for workers in underserved communities.”
IIP’s shares were trading 3.87% higher at $173.34 per share at the time of writing.
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