REIT To Set Up Cannabis Cultivation Facility In Massachusetts Via $27M Deal

Cannabis-focused real estate company Innovative Industrial Properties Inc. IIPR said Thursday it has finalized its $26.8 million acquisition of an Athol, Massachusetts-based property. The acquired property spans about 199,000 square-feet of industrial space.

Innovative Industrial Properties signed a long-term lease agreement with a subsidiary of Ascend Wellness Holdings LLC, a vertically-integrates cannabis company, for further operation as a licensed cannabis cultivation and processing facility.

Under this agreement, Ascend Wellness is expected to finalize tenant enhancements at the property, for which the company will offer compensation of up to around $22.2 million. The company’s total investment in the property will amount to $49 million.

This is the third real estate deal between Innovative Industrial Properties and Ascend Wellness Holdings.

“Abner and his team have achieved a tremendous amount of success over the past year, executing on their focused business model and ramping operations, and we are thrilled to support them as their long-term real estate capital partner on this third transaction in Massachusetts,” Innovative Industrial President and CEO Paul Smithers said in a statement.

Smithers also praised Massachusetts for deeming medical cannabis an essential product during the Covid-19 pandemic.

The move allows cannabis companies to provide "continued access to patients during this very difficult period,” he added.

Innovative Industrial Properties’ shares were trading 2.68% higher at $70.26 per share Friday morning.

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