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.
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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