Innovative Industrial Properties (IIP) and Atlanta-based multistate marijuana operator Parallel have struck another sale-leaseback deal.
The San Diego-based real estate investment trust (REIT) said it has closed on a transaction valued at up to $67.8 million to purchase a cultivation and processing facility owned by Parallel in Pittsburgh and to fund improvements to the facility.
The purchase price is $41.8 million with up to $26 million of improvements expected, according to a news release.
When totally redeveloped, the facility is expected to comprise 239,000 square feet of industrial space.
Parallel, formerly known as Surterra Wellness, is expected to use 124,000 square feet of space in the first phase, and an additional 36,000 square feet of space are available for expansion. The remaining 79,000 square feet of space would be subleased, according to the news release.
The Pennsylvania medical cannabis market has been red-hot, and operators also are preparing for eventual adult-use legalization.
IIP owns and leases back to Parallel two cannabis cultivation and processing facilities in Florida and one property in Texas.