Add another cannabis property to Innovative Industrial Properties’ portfolio after the San Diego-based real estate investment trust (REIT) closed a potentially $56.4 million deal to acquire and lease back a marijuana facility in Florida.
IIP is acquiring the property in Lakeland, Florida, from Atlanta-based multistate cannabis operator Parallel.
Formerly known as Surterra Wellness, Parallel still does business in Florida under the Surterra brand.
Under terms of the deal, IIP will:
- Pay $19.6 million for an existing 65,000-square-foot building.
- Invest up to roughly $36.8 million in the industrial and greenhouse indoor cultivation and production space currently in operation and add approximately 155,000 square feet of space. That will bring the facility’s total footprint to roughly 220,000 square feet.
- Have a total investment, assuming full reimbursement, of $56.4 million.
With this deal, IIP has spent more than $150 million since April to acquire cannabis facilities in sale-leaseback deals. As of Sept. 21, IIP owned 63 properties across the country.
These types of arrangements provide marijuana companies with cash at a time when more traditional sources of funding remain relatively scarce.
Parallel has operations across the country, including in Florida, Massachusetts, Nevada and Texas.
The privately held company owns 42 retail dispensaries as well as cultivation, production and research facilities.
Innovative Industrial Properties trades on the New York Stock Exchange as IIPR.