Multistate cannabis operator Green Thumb Industries on Monday said it is selling and leasing back its Toledo, Ohio, processing facility in a deal valued at up to $7.2 million.
The buyer is Innovative Industrial Properties, a San Diego-based real estate investment trust that specializes in sale-leaseback deals involving cannabis companies.
IIP paid $2.9 million for the facility and will reimburse Chicago-based Green Thumb as much as $4.3 million in tenant improvements – making the deal worth roughly $7.2 million.
“IIP provides a flexible real estate capital solution that effectively addresses our expansion needs at the processing facility in Toledo,” GTI founder and CEO Ben Kovler said in a statement.
He said the company plans to use the proceeds “for strategic initiatives and capacity expansion projects.”
Sale-leaseback deals – where companies sell their own facilities in an effort to raise cash and then lease them back – are becoming more commonplace in the marijuana industry.
This is the second sale-leaseback deal between GTI and IIP.
In November, GTI closed a $39.6 million sale-leaseback deal for a facility in Pennsylvania.
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