Innovative Industrial Properties, a San Diego real estate investment trust (REIT) serving the medical marijuana industry, is spending $18.5 million to acquire and lease out a property near Boston that will be used as an MMJ cultivation and processing facility.
Innovative Industrial Properties, which trades on the New York Stock Exchange as IIPR, bought the property in Holliston for $3 million, according to a news release.
The REIT also entered into a lease and development agreement with a subsidiary of PharmaCann, an Illinois-based multistate medical cannabis cultivation and dispensary business.
Here’s what you need to know:
- The PharmaCann unit will lease a 32,000-square-foot greenhouse and a 26,000-square-foot industrial facility.
- The lease is for 15 years, with options to extend, while the annual base rent is about $2.7 million. The subsidiary is also expected to construct two other buildings on the land.
- Innovative Industrial Properties will reimburse PharmaCann up to $15.5 million for construction costs.
- That reimbursement and the original $3 million purchase price bring Innovative Industrial Properties’ total investment to $18.5 million.