Cannabis Cultivation Facility Coming to Maryland
- May 08, 2017
Innovative Industrial Properties Inc. has entered an agreement to purchase a 72,000-square-foot industrial building at 9220 Alaking Court in Capitol Heights, Md. The transaction is expected to close by the end of the second quarter and the initial purchase price is $8 million.
Innovative Industrial Properties will also provide improvement work reimbursements to the seller, Willco Construction Co., and tenant-to-be, Holistic Industries Inc., of up to $3 million and $4 million, respectively. This brings the total acquisition cost to $15 million.
Holistic plans to start leasing the property in the third quarter of 2017, after development work is finalized, and to transform the facility into the only medical-use cannabis cultivation place in the county. The tenant is one of the 15 companies in Maryland that have provisional approval for cultivating, processing and dispensing cannabis for medical use.
Innovative Industrial Properties Inc. and Holistic are expected to close a 16-year triple net lease with three renewal options of five years each.
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