Cannabis REIT IIP Inks Deal With Harvest Health For Fourth Florida Property

Cannabis-focused real estate company Innovative Industrial Properties Inc. IIPR has finalized its purchase of an Alachua, Florida-based property for $23.8 million.

This is the company’s fourth acquisition in Florida. It covers around 295,000 square feet of industrial space.

Innovative Industrial Properties, or IIPR, signed a long-term, triple-net lease-back deal with a subsidiary of Harvest Health & Recreation Inc. HARV HRVSF.

Harvest, a vertically-integrated cannabis operator, will continue running the cultivation and processing facility as a tenant. IIPR will provide up to $10.8 million for property enhancements.

With the full compensation for the tenant enhancements, IIPR will invest a total of $34.6 million in the property.

“We are thrilled to form our new real estate partnership with Harvest,” IIPR president and CEO Paul Smithers stated. “Harvest has established a tremendous footprint in its four core markets of Arizona, Florida, Maryland and Pennsylvania, and continues to execute strongly on its targeted growth and expansion in those markets."

Harvest will “build out" additional enhancements and productive capacity at the Alachua facility, which will enable their continued expansion in Florida to meet growing demand, Smithers added.

Florida now has over 460,000 registered patients in the state. That's the largest registered patient population of the 35 medical-use cannabis programs in the U.S., he added.

Per the Florida Office of Medical Marijuana Use, the state has more than 2,700 qualified doctors in the medical-use cannabis program as of Jan. 15.