Innovative Industrial Properties (IIP) acquired a marijuana property in New Jersey from Ascend Wellness for $35.4 million and secured a long-term lease with the company.
The San Diego-based real estate investment trust said it also agreed to provide up to $4.6 million to Ascend Wellness for making additional improvements to the 114,000-square-foot cultivation and processing facility.
That increases the total value of the sale-leaseback deal to $40 million.
New York-based Ascend Wellness is planning to build out the property to include a laboratory, kitchen and 150,000-square-feet of canopy space by the end of 2023.
New Jersey is expanding its medical cannabis program, and is expected to launch a recreational marijuana program in the coming months.
MJBizDaily has projected that adult-use sales will reach $2.1 billion by the fourth year of the program.
Business leaders need reliable industry data and in-depth analysis to make smart investments and informed decisions in these uncertain economic times.
Order your 2022 MJBiz Factbook, out now!
- 200+ pages and 50 charts with key data points
- State-by-state guide to regulations, taxes & opportunities
- Segmented research reports for the marijuana + hemp industries
- Accurate financial forecasts + investment trends
Stay ahead of the curve and avoid costly missteps in the rapidly evolving cannabis industry.
IIP already owns and leases to Ascend Wellness three properties in Illinois, Massachusetts and Michigan, totaling $179.8 million in investments and commitments for tenant improvements.
The marijuana real estate company also owns three cultivation and processing facilities and one dispensary in New Jersey, representing a total investment of $90 million, counting commitments to tenant improvements.