Cannabis REIT Innovative Industrial Properties buys Texas site for $22 million

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San Diego-based Innovative Industrial Properties (IIP) will pay $22 million to acquire 25 acres of land and a facility from a medical cannabis company in Austin, Texas.

IIP, a publicly traded real estate investment trust (REIT), said in a news release that it is spending an initial $12 million to acquire the land and will pay an additional $10 million when Texas Original finishes building out a cultivation and production facility.

When construction is completed, the facility will total 85,000 square feet of industrial and greenhouse space, with 49,000 square feet of cultivation space and the rest to be used for manufacturing, testing and administrative activities.

Texas Original is one of three vertically integrated license holders in the limited MMJ market and, according to the release, is the only cannabis provider headquartered in the state.

Last year, Texas Original secured $21 million in funding to boost medical marijuana production and delivery.

The company has raised $40 million to date, according to a release, and operates a cannabis production and delivery facility in Austin as well as a delivery network.

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As of June 15, Innovative Industrial Properties owned 111 properties in 19 states, with a total of approximately 8.4 million rentable square feet.

The REIT trades on the New York Stock Exchange as IIPR.