Real estate investment trust Power REIT acquired a cannabis property in northeastern Oklahoma and signed a 20-year lease to rent the facility to a marijuana producer.
According to a Friday news release, Power REIT is spending roughly $2.65 million to acquire and renovate the real estate, which includes:
- A 9.3-acre property and approximately 40,000 square feet of greenhouse space.
- Office space.
- 100,000 square feet of fenced outdoor growing area.
Old Bethpage, New York-based Power REIT did not specify who sold the property.
The property will be leased to Vinita Cannabis, also known as VinCann, which will use it to cultivate cannabis.
“Taking over the existing operations gives us a running start in Oklahoma,” VinCann president Jared Schrader noted in the release. “We believe this property is well-positioned to allow us to become a large-scale producer of high-quality cannabis at a competitive cost.
“We are focused on speed to revenue as well as ramping up our plant count which will drive substantial revenue growth.”
VinCann will pay expenses, including maintenance, insurance and taxes on the property.
“We are expanding our nationwide footprint and diversifying portfolio risk with this acquisition in Oklahoma,” Power REIT Chair and CEO David Lesser said in a statement.
“This cultivation facility is already operational and will be upgraded to provide operational improvements. There is also ample expansion opportunity that will allow our tenant to capitalize on the increasing demand for cannabis products in Oklahoma.”
Power REIT recently acquired a marijuana greenhouse in Michigan and raised $37 million for cannabis real estate acquisitions earlier this year.
Shares of Power REIT trade as PW on the New York Stock Exchange.