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 (AWH) 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-foot facility in Athol, Massachusetts.
The marijuana processed at the facility can be sold for both the adult-use and medical cannabis markets, an AWH spokeswoman told Marijuana Business Daily.
AWH has agreed to pay the REIT an initial rent rate of 13.5% on the initial purchase price and tenant improvement allowance.
This marks the third, and largest, sale-leaseback deal IIP has done with Ascend Wellness.
In December 2018, IIP 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 in a $19.8 million deal.
Ascend Wellness has raised $100 million in capital since 2018, including a $55 million raise in February 2019 to be used for expansion.
Innovate Industrial Properties trades on the New York Stock Exchange as IIPR.
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