Cannabis REIT Innovative Industrial Properties Acquires Harvest Health's Maryland Property For $16.6M

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Vertically integrated cannabis company Harvest Health & Recreation Inc. HARV HRVSF, which is looking to merge with Trulieve Cannabis Corporation TCNNF has closed a sale-leaseback transaction with Innovative Industrial Properties, Inc. IIPR.

The Phoenix-based company said Monday it has sold a property in Hancock, Maryland, for approximately $16.6 million excluding transaction costs.

Simultaneously with the sale, Harvest entered into a long-term lease with the San Diego cannabis REIT, expecting to recover up to roughly $12.9 million in tenant improvements from IIP. Total proceeds for the transaction are expected to hit $29.5 million.

"We are pleased to secure real estate financing to support expansion activities at our Hancock cultivation and processing facility," Steve White, CEO of Harvest said. "Maryland is one of our core markets with significant future growth potential. We look forward to expanding our wholesale operations and providing continuing support for our retail locations in Maryland after additional capacity comes online."     

Currently, the company operates three medical dispensaries in Halethorpe, Lutherville-Timonium and Rockville, all supported by a cultivation and processing facility in Hancock.  

Harvest recently disclosed it had generated $102.5 million in revenue during the second quarter, representing an 84% year-over-year increase.

Price Action

Harvest Health’s shares traded 8.01% lower at $3.1 per share after market close Monday morning.

IIPR’s shares traded down roughly 1.23% at 226.95 per share Tuesday morning.

Photo: Courtesy of Esteban Lopez on Unsplash

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