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Innovative Industrial Properties, a real estate investment trust (REIT) that focuses on buying and leasing warehouses in the marijuana space, paid $17 million to Trulieve Cannabis for a five-building cultivation facility in Florida.
Trulieve will lease back the 150,000-square-foot marijuana cultivation centers in Quincy, Florida, from IIP.
The initial lease is for 10 years, with the rent equal to 11% of the purchase price.
Trulieve, based in Tallahassee, Florida, has two options to extend the lease by five years each, or for another 10 years.
Earlier this year, Innovative Industrial signed a sales-leaseback deal with Trulieve for a 150,000-square-foot industrial facility in Holoyke, Massachusetts. In that deal, the purchase price was $3.5 million.
The REIT will reimburse Trulieve up to $40 million for improvements to the building.
Trulieve is by far the largest player in Florida’s medical marijuana market with about a 50% market share, Marijuana Business Daily reported in September.
The 2019 Marijuana Business Factbook projects medical marijuana sales in Florida this year of $425 million-$525 million.
San Diego-based Innovate Industrial Properties trades on the New York Stock Exchange as IIPR.
Trulieve trades on the over-the-counter markets as TCNNF and on the Canadian Securities Exchange as TRUL.
For more on the Trulieve leaseback deal, click here.
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