Chicago marijuana firm inks $29 million real estate deal

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Revolution Global, a Chicago-based cannabis company, will more than double the capacity at its flagship cultivation facility in Illinois after securing $28.75 million in funding from Freehold Properties, a Las Vegas-based real estate investment company.

The doubling of size is in anticipation of a huge increase in demand when recreational marijuana sales begin in Illinois on Jan. 1, officials said.

The cannabis sector in Illinois is “poised for exponential growth” when adult-use marijuana sales begin next year, Don Brain, the co-founder, chair and CEO of Freehold, said in a statement.

Revolution “sees enormous potential to grow” as the “Illinois cannabis sector feverishly prepares for adult use,” CEO Mark de Souza said in a statement.

Revolution currently leases a 75,000-square-foot cultivation facility on 70 acres in Delvan, Illinois.

With the proceeds from Freehold, Revolution plans to build an equally large indoor cultivation facility and a greenhouse on the site.

Rent will accrue during the expected nine- to 12-month construction period.

Freehold has an option to purchase all the facilities for $30 million by March 2021.

In August, Curaleaf Holdings announced it would sell to Freehold six cultivation, processing and retail buildings in Florida, Massachusetts and New Jersey for $28.3 million.

For more on the Illinois deal, click here.