Innovative Industrial Properties Strikes Sale-Leaseback Deal With Green Thumb Industries On Ohio Property

Green Thumb Industries Inc. GTII GTBIF has closed a sale-leaseback agreement for a Toledo, Ohio processing facility with medical cannabis real estate company Innovative Industrial Properties, Inc. IIPR.

The agreement is for $2.9 million, not including transaction costs, according to a Monday press release from Innovative.

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The closing serves as the latest example in the rising trend of sale-leaseback deals in the space.

The deal is the second between the two companies. Previously, the two closed a similar transaction for GTI's Danville, Pennsylvania facility in November 2019.

The closing gives Innovative its 49th property across several U.S. markets, including Arizona, California, Colorado and Florida, giving the company 3.2 million square feet in rentable area.

Per the deal, GTI is expected to make specific upgrades to the facility for which Innovative will reimburse up to $4.3 million. In total, the deal could reach $7.2 million in size. 

Ben Kovler, GTI CEO and founder, said in a statement the company will use the funds for "strategic initiatives and capacity expansion projects."

Green Thumb shares were trading down 3.25% at $9.24 at the time of publication Monday, while Innovative shares were trading 4.1% higher at $93.17.