Cannabis REIT IIP Closes Texas Property Purchse, Expands Collaboration With Parallel

Innovative Industrial Properties Inc. IIPR has purchased a Texas-based property for roughly $3.4 million.

The San Diego cannabis REIT confirmed Thursday it's closing the acquisition of a San Marcos-based property and entering into a long-term lease with Surterra Texas' subsidiary.

Surterra San Marcos LLC opted to build one retail and two industrial buildings under the deal, spanning 63,000 square feet in total.

In exchange, IIP agreed to pay $24 million, bringing its total investment into the property to $27.4 million, excluding transaction costs.

Surterra San Marcos is poised to utilize the property to cultivate, process, and sell cannabis once the construction is finalized.

IIP president and CEO Paul Smithers is "excited to continue the expansion of our long-term real estate partnership with the Parallel team."

Parallel CEO Beau Wrigley Jr. shared Smithers' enthusiasm.

"We believe that Texas will be a significant cannabis market, and our collaboration with Innovative Industrial Properties will enable us to build a cultivation and production facility that will help us advance our mission to improve well-being through cannabinoids," Wrigley highlighted.

Surterra Texas is a subsidiary of Parallel, a vertically-integrated cannabis company that operates in several states, including Florida, Texas, Massachusetts, Nevada, and Pennsylvania.

The Atlanta-based company recently went public through a $1.9 billion worth sale deal with a special purpose acquisition corporation (SPAC), Ceres Acquisition Corp. CERAF.

Besides the newly acquired property, IIP owns and leases two more Florida-based cannabis and processing facilities to Parallel's subsidiaries.

The cannabis REIT bought Parallel's Lakeland-based property in September for approximately $19.6 million.

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