Multistate cannabis operator Harvest Health & Recreation closed a sale-leaseback transaction, selling a cultivation and processing facility in Hancock, Maryland, to Innovative Industrial Properties in a deal valued at $29.5 million.
Harvest received $16.6 million for the property and anticipates completing unspecified improvements totaling $12.9 million, which will be reimbursed by the California-based real estate investment trust (REIT).
“Maryland is one of our core markets with significant future growth potential,” Harvest CEO Steve White said in a news release.
“We look forward to expanding our wholesale operations and providing continuing support for our retail locations in Maryland after additional capacity comes online.”
Arizona-based Harvest operates medical marijuana dispensaries in the Maryland communities of Halethorpe, Lutherville-Timonium and Rockville. Those are supported by a cultivation and processing facility in Hancock.
Harvest’s release did not specify how the company intends to use the proceeds from the facility sale.
Innovative Industrial Properties, which owns dozens of properties across at least 17 states, previously completed a sale-leaseback deal with Harvest in Florida.
Harvest shares trade on the Canadian Securities Exchange as HARV.
Innovative Industrial Properties lists its shares on the New York Stock Exchange as IIPR.