GR Companies Inc., considered to be a major cannabis operator in Oklahoma and ten other states has closed on the $24 million purchase of two properties from Innovative Industrial Properties Inc. in Pennsylvania and North Dakota.
Innovative Industries Properties said they were two sale-leaseback transactions with subsidiaries of Grassroots and the properties comprise about 105,000 square feet of industrial space. The total sales price was $24.1 million and Grassroots intends to continue to operate the properties as regulated cannabis cultivation and processing facilities.
Grassroots is expected to complete additional tenant improvements for the properties, including an approximately 35,000 square foot redevelopment at the Pennsylvania property, for which IIP has agreed to provide aggregate reimbursement of up to approximately $13.2 million. Assuming full reimbursement for the tenant improvements, IIP’s total investment in the two properties will be approximately $37.3 million.
These sale-leaseback transactions mark IIP’s second and third acquisitions and leases with Grassroots, with a prior sale-leaseback transaction for Grassroots’ licensed cannabis cultivation and processing facilities in Illinois completed in October.
Grassroots is one of the leading multi-state cannabis operators, with operations in Illinois, Pennsylvania, Maryland, Ohio, North Dakota, Nevada, Michigan, Oklahoma, Vermont, Connecticut and Arkansas.
