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Cannabis REIT Innovative Industrial Properties, Inc. IIPR confirmed Monday it has closed on the acquisition of a 16-acre property comprising 145,000 square feet of industrial space in Ocala, Florida. Under the deal, it has entered into a long-term, triple-net lease with a subsidiary of AyrWellness Inc. AYRWF.
The purchase price for the property was $13.0 million ($90 per square foot). Ayr is expected to redevelop one building on the property comprising 98,000 square feet of industrial space for expected use as a regulated cannabis cultivation facility upon completion, for which IIP has agreed to provide reimbursement of up to $30.0 million. Assuming full reimbursement for the construction, IIP’s total investment in the property is expected to be $43.0 million (excluding transaction costs).
In addition to this property, IIP owns and leases to Ayr one processing facility in Ohio comprising 11,000 square feet.
Huge Potential In Florida
Ayr, a vertically integrated cannabis operator in the U.S, operating in eight states with 18 production facilities and 91 dispensary locations. Recently, the company disclosed its first quarter 2024 total revenues of $118 million and adjusted EBITDA of $29 million. In the Sunshine State alone, Ayr operates 64 dispensary locations, with 745,000 square feet of existing production capacity
