Marijuana real estate investment trust Innovative Industrial Properties announced $45 million worth of funding to privately held multistate cannabis operator PharmaCann to expand its New York facility.
Innovative Industrial Properties (IIP) closed a sale-leaseback deal on PharmaCann’s Hamptonburgh cultivation and processing facility in 2016, acquiring the property for $30 million.
IIP has since committed another $33.5 million.
“Assuming full payment of the additional funding, IIP’s total investment in the 225,000-square-foot property will be $108.5 million,” IIP said in a Thursday news release.
Under the amended lease, IIP will provide $45 million “for the development of a new 98,000-square-foot industrial building for cultivation and significant enhancements in production capacity and additional upgrades at the existing 127,000-square-foot facility.”
San Diego-based IIP said PharmaCann is its “largest tenant partner in terms of capital investment (including commitments to fund future qualifying improvements and development) and annualized base rents.”
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IIP also owns and leases five cannabis dispensaries and five cultivation facilities to PharmaCann in Colorado, Illinois, Massachusetts, Michigan, Ohio and Pennsylvania.
Innovative Industrial Properties shares trade on the New York Stock Exchange as IIPR.