New York-based Power REIT on Thursday announced the acquisition of a 37,000-square-foot Southern California greenhouse used for cultivation of commercial cannabis in a cash and stock deal worth $7.7 million.
The Riverside County property, which is already leased to cultivator and flower brand Canndescent, was acquired from another private real estate investment trust, Power REIT Chair and CEO David Lesser told Marijuana Business Daily.
The transaction involved $2.7 million in cash and 192,308 shares of Power REIT stock, which closed at $26 per share on Feb. 2. Power REIT trades on the New York Stock Exchange as PW.
Santa Barbara-based Canndescent pays a little more than $1 million in annual rent to use the greenhouse, according to a news release.
Lesser said in the release that the acquisition “expands our national footprint” and added that the deal “provides attractive valuation metrics.”
Canndescent CEO Adrian Sedlin said in the release that the company is “excited to partner with Power REIT” and is “already exploring additional pipeline and business opportunities that could be mutually beneficial.”
– John Schroyer