Power REIT strikes $18.5 million deal to acquire Michigan cannabis greenhouse

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Power REIT announced an $18.5 million purchase agreement to acquire a Michigan property that the real estate investment trust describes as the state’s “largest greenhouse cannabis cultivation and processing facility.”

The unidentified property is approximately 66 acres in size, with a 522,530-square-foot “high-tech greenhouse and processing space” and plans are in place to add 330,236 square feet, according to a news release issued Tuesday.

Power REIT did not specify where the property is located in Michigan but said it “is strategically located in an area that offers the potential for unlimited cannabis cultivation licenses.”

“This is a turnkey setup that is ready to start growing immediately offering an attractive speed-to-revenue opportunity,” New York-based Power REIT noted in the release.

“With this possible acquisition, Power REIT enters the Michigan market which is currently experiencing dramatic growth in cannabis sales at prices that are higher than national averages,” Power REIT Chair and CEO David Lesser said.

Power REIT invests in greenhouse properties, including cannabis production facilities, as well as other types of real estate such as solar farmland and railroad properties.

The company acquired a Southern California cannabis greenhouse for $7.7 million in February.

Power REIT raised $37 million for marijuana acquisitions that same month.

Power REIT shares trade as PW on the New York Stock Exchange.