Power REIT Buys Greenhouse Cannabis Cultivation Property For $1.8M

Power REIT (NYSE-AMEX: PW) confirmed Monday the acquisition of two properties in Colorado.

The move comes months after the purchase of another Colorado property, dubbed Maverick 5.

The Old Bethpage, New York-based real estate investment trust obtained a total of 4.21 acres in Crowley County via PropCo, its wholly-owned subsidiary.

Under the $1.84 million deal, Power REIT opted to provide funds for the build-out of a greenhouse and processing facility spanning roughly 21,732 square feet, the company noted.

Simultaneously, PropCo sealed a 20-year triple-net lease with The Grail Project LLC, poised to operate a cannabis cultivation facility. Following the initial term, the lease has four renewal options, each for a period of five years.

In addition, Grail Project agreed to cover all expenses concerning the property.

“We continue to deploy capital on a highly accretive basis and in a manner that supports our investment thesis of investing in sustainable greenhouse properties,” Power Reit chair and CEO David Lesser said in a statement. “We remain enthusiastic about expanding our greenhouse portfolio in Colorado, which should compete favorably with indoor cultivation facilities, while providing real estate for Gail Project to grow high-quality cannabis at a competitive cost."

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