April 6, 2020
San Diego-based cannabis REIT Innovative Industrial Properties (IIP) closed on the $26.8-million acquisition of a 199,000-square-foot industrial property in Athol, MA.
Concurrently, IIP entered into a long-term, triple-net lease agreement with a subsidiary of Ascend Wellness Holdings (AWH) for continued operation as a licensed cannabis cultivation and processing facility. It’s expected to be among the largest facilities of its kind on the East Coast.
In the third partnership between the two companies, AWH is expected to complete tenant improvements for the property, and IIP has agreed to provide reimbursement of up to $22.2 million. The reimbursement will bring IIP’s total investment in the property to $49 million.
“We are pleased that the Commonwealth of Massachusetts, in step with other state and local jurisdictions, has deemed medical cannabis an essential product, providing continued access to patients throughout the Commonwealth” during the COVID-19 pandemic, said IIP CEO Paul Smithers.
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