Harvest closes $34.6M Florida sale-leaseback deal with marijuana REIT

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Multistate marijuana operator Harvest Health & Recreation on Monday closed a sale-leaseback transaction, selling a cultivation and processing facility in Alachua, Florida, to Innovative Industrial Properties for $23.8 million.

Harvest anticipates approximately $34.6 million in total proceeds from the deal, including $10.8 million in unspecified improvements to be completed by Harvest and reimbursed by California-based real estate investment trust (REIT) Innovative Industrial Properties.

Arizona-based Harvest will continue operating the facility under a triple-net lease.

“Florida is one of our core markets with a rapidly growing medical patient population,” Harvest CEO Steve White in a news release.

“We look forward to opening new retail locations in Florida after additional capacity at Alachua comes online.”

Harvest’s release did not specify how the company intends to use the proceeds from the facility sale.

Innovative Industrial Properties now owns 67 properties across 17 states, the company said in announcing the deal.

Harvest shares trade on the Canadian Securities Exchange as HARV.

Innovative Industrial Properties trades on the New York Stock Exchange as IIPR.