Innovative Industrial Properties, a cannabis-focused real estate investment trust (REIT), said it has agreed to purchase a partially developed property in Capitol Heights, Maryland, and plans to invest up to $15 million in a medical cannabis cultivation facility there.
The building on the site, once completed, is expected to total about 72,000 square feet.
Based in San Diego, Innovative Industrial Properties buys medical marijuana-related facilities and leases them out.
According to a press release, the company plans to enter into a long-term lease agreement with Holistic Industries, which intends to use the facility as the only medical cannabis cultivation facility in Prince George’s County, Maryland.
Holistic is one of 15 companies in Maryland to receive preliminary approval to cultivate medical marijuana by the Maryland Medical Cannabis Commission and is one of three companies to receive full vertical integration licenses.
The initial purchase price for the property is $8 million. According to the news release, the seller – an affiliate of Willco Construction Co. – will be responsible for completing “certain development milestones” for which it will be reimbursed $3 million.
Holistic, as tenant, is also expected to complete improvements to the building. Innovative Industrial Properties has agreed to reimburse Holistic to $4 million.
Last year, Innovative became the first marijuana-related company to trade on the New York Stock Exchange under the ticker symbol IIPR.