Cannabis REIT Innovative Industrial Properties Inc. (NYSE: IIPR), which recently secured $225 million in funding through an underwritten public offering, has has purchased a property in Blue Anchor, New Jersey for $5.5 million.
The newly acquired property will be operated by a subsidiary of Curaleaf Holdings Inc. (CSE: CURA) (OTCQX: CURLF).
The property includes around 111,000-square-feet of industrial space.
San Deigo-based IIPR entered into a long-term, triple-net lease deal for the property, and agreed to provide reimbursement of up to $29.5 million for all improvements made by Curaleaf.
Assuming full reimbursement for the tenant improvements, IIPR’s total investment in the property will be $35 million.
“Curaleaf and their team have clearly demonstrated their commitment over time to delivering the highest, New Jersey quality cannabis products to patients and consumers,” IIPR CEO Paul Smithers said.
New Jersey has been working on helping patients access the medical cannabis program for years.
In 2019, the state allowed the use of oil-based formulation while adding seven qualifying medical conditions for the program, including anxiety, migraines, PTSD, and particular types of chronic pain.
New Jersey Governor Phil Murphy, who is known for advocating marijuana legalization, further expanded the program a year ago by signing the Jake Honig Compassionate Use Medical Cannabis Act into law.
Moreover, Murphy said Tuesday that cannabis legalization could boost both state’s economic recovery from the COVID-19 pandemic and racial justice.
In an interview on the radio program ‘Jim Kerr Anytime,’ Murphy explained that New Jersey needs an unconventional and innovative approach to generating revenue during the current health crisis.
“As you probably know, I’ve been on that from day one,” Murphy commented on legalization of adult-use cannabis, which is on this year’s ballot.
“We’re not inventing marijuana,” added Murphy. “It exists.”