Innovative Industrial Properties is extending its real estate relationship with a multistate marijuana company after purchasing more than 92 acres in New York next to one of the real estate investment trust (REIT)’s properties leased to Goodness Growth Holdings.
According to a news release, the purchase price of the land was $10.2 million.
Minneapolis-based Goodness Growth plans to build out a licensed cannabis cultivation and processing facility on the land.
According to the release, San Diego-based Innovative Industrial Properties (IIP) and Goodness Growth will partner on the development of 324,000 square feet of industrial space.
IIP is expected to reimburse Goodness Growth up to approximately $46.1 million for the construction of the facility, making the total value of the deal $56.3 million.
With this deal and another property IIP leases to Goodness Growth in Minnesota, the two companies partner on roughly 453,000 square feet of industrial and greenhouse space and a total commitment of approximately $72.8 million.
The cannabis REIT owns more than 75 properties across the U.S.
Innovative Industrial Properties trades on the New York Stock Exchange under the ticker symbol IIPR.