Innovative Industrial Properties, Inc. (NYSE: IIPR), a cannabis-focused real estate company, closed on the acquisition of a New Jersey property and entered into a long-term lease with a subsidiary of Ascend Wellness Holdings, Inc. (OTCQX:AAWH) at the property.
The purchase price for the property was $35.4 million (excluding transaction costs). AWH is expected to complete additional improvements for the approximately 114,000 square foot property as a regulated cannabis cultivation and processing facility, for which IIP has agreed to provide reimbursement of up to $4.6 million. Assuming full reimbursement for the tenant improvements, IIP's total investment in the property is expected to be $40 million. AWH is planning to build out its overall New Jersey cultivation footprint to include a lab, kitchen and 150,000 square feet of canopy by the end of 2023.
