Marijuana real estate company Innovative Industrial Properties (IIP) amended a lease on a cannabis cultivation and processing property in Danville, Pennsylvania, operated by Green Thumb Industries, yielding a $55 million reimbursement for GTI’s development of a new building.
San Diego-based IIP bought the property from Green Thumb for $20.3 million in 2019, then leased it back to the Chicago-headquartered multistate operator while funding improvements such as new growing, production and processing space as well as area for utility infrastructure.
The $55 million in new funding under the amended lease “was utilized as reimbursement to Green Thumb for costs incurred in the ground-up development of an additional approximately 152,000-square-foot indoor cultivation and processing facility,” IIP noted in a Thursday news release.
“The new facility contains flower rooms, veg rooms, mother rooms, dry rooms, processing, storage, office and supporting spaces,” IIP noted.
IIP also owns Green Thumb cannabis facilities in Illinois and Ohio.
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“IIP’s total investment in properties leased to Green Thumb is approximately $176.8 million,” according to the IIP release.
“Green Thumb is IIP’s fourth largest tenant partner in terms of capital investment.”
IIP said it owns 111 properties in 19 states as of June 30.