Cannabis REIT inks $49 million sale-leaseback deal with Ascend

Women, minority execs show few gains in U.S. cannabis industry, according to the latest data from the MJBiz Diversity, Inclusion and Equity Report. Get your copy here.


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.

IIP also agreed to reimburse Ascend Wellness up to $22.2 million in tenant improvements, bringing the total deal to $49 million.

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.

For analysis and in-depth looks at the investment trends and deals driving the cannabis industry forward, sign up for our premium subscription service, Investor Intelligence.