Innovative Industrial Properties, Inc. (IIP), a real estate investment trust focusing on the regulated American cannabis industry, today announced closing on the acquisition of a 104,000 square foot industrial property in Webster, Massachusetts, according to a press release.
The company says the property is worth $21.5 million and built to operate as a “regulated cannabis cultivation and processing facility.” IIP also announced entering into a lease agreement for the space with Curaleaf Holdings, Inc., a regulated cannabis operator which operates in 22 U.S. states and parts of Europe.
IIP says the acquired property includes cultivation, manufacturing, office and storage space facilities, and is projected to produce approximately 32,000 pounds of cannabis flower every year.
In addition to this acquisition the firm also currently owns 111 properties across the U.S., including Arizona, California and New York, across approximately 8.7 million square feet of rentable space and $2.4 billion in portfolio commitments.
The statement also notes that IIP, which is Curaleaf’s fifth largest tenant partner for capital investment, invests in the regulated cannabis industry, serving as a capital source for operators and leasing back their real estate assets. IIP also offers solutions for real estate capital-related issues.
The Massachusetts property marks the company’s fourth facility in the cannabis cultivation industry. Three IIP-owned dispensaries are located in Illinois, New Jersey, North Dakota and Pennsylvania, spanning approximately 578,000 sq. ft., according to the release.
Curaleaf currently operates 26 cultivation sites across approximately 4.4 million sq. ft., in addition to 136 dispensaries. The company also says it is a vertically-integrated operator in Massachusetts, with four dispensaries and two cultivation and processing facilities in the state. It claims total revenue in the second quarter of 2022 totaled $338 million.
In other recent proptech news, April Housing, a real estate portfolio company launched by Blackstone, appointed Perica Bell as its head of preservation. Cypress Equity Investments (CEI), a multifamily developer and real estate investment company, established its presence in Florida with new offices in St. Petersburg and Ft. Lauderdale, announced their CEO.