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Innovative Industrial Properties, a real estate investment trust that specializes in the marijuana industry, bought a cannabis cultivation and processing facility in Massachusetts from Ascend Wellness Holdings in a $49 million sale-leaseback deal.
San Diego-based IIP paid $26.8 million to Boston-based AWH – a vertically-integrated, multistate marijuana operator – for a 199,000-square-facility in Athol, Massachusetts.
The MJ processed at the facility can be sold for both the adult-use and medical marijuana markets, an AWH spokeswoman told Marijuana Business Daily.
IIP also has agreed to reimburse AWH up to $22.2 million in tenant improvements, bringing the total deal to $49 million.
AWH has agreed to pay the REIT an initial rate rent of 13.5% on the initial purchase price and tenant improvement allowance.
This marks the third, and the largest, sale-leaseback deal IIPR has done with AWH.
In December, 2018, IIRP acquired a 75,000-square-foot facility in Illinois from AWH in a deal with a total value of $33 million.
Last July, IIP acquired a 145,000-square-foot property from AWH is a $19.8 million deal.
AWH has raised $100 million in capital since 2018. Last February, it raised $55 million for expansion.
Innovate Industrial Properties trades on the New York Stock Exchange as IIPR.
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