Innovative Industrial Properties, which focuses on the regulated US cannabis industry, has closed on the acquisition of a 16 acre property comprising 145,000 square feet of industrial space in Ocala, Fla., and entered into a long-term, triple-net lease with a subsidiary of AYR Wellness.

The purchase price for the property was $13 million, or $90 per square foot. AYR is expected to redevelop one building on the property comprising 98,000 square feet of industrial space to be used as a regulated cannabis cultivation facility, for which IIP has agreed to provide up to $30 million. Assuming full reimbursement for the construction, IIP's total investment in the property is expected to be $43 million.

IIP's business model is to partner with regulated cannabis operators and serve as a source of capital by acquiring and leasing back their real estate assets. AYR operates in eight states with 18 production facilities and 91 dispensary locations.

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Erika Morphy

Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.