Green Thumb Industries has closed on a transaction to sell its Danville, Pennsylvania cultivation and processing facility to Innovative Industrial Properties (IIP). According to the company, GTI will lease back the facility via a long-term agreement and continue to operate and manage it.
The purchase price for the property was $20.3 million, excluding transaction costs. GTI is also expected to make certain improvements to the property that will significantly enhance production capacity, for which IIP has agreed to provide reimbursement of up to $19.3 million. Assuming full reimbursement for such improvements, IIP’s total investment in the property will be $39.6 million.
“IIP provides a flexible real estate capital solution that effectively addresses our expansion needs at the cultivation and processing facility in Danville,” said GTI Founder and CEO Ben Kovler. “We plan to use the proceeds for strategic initiatives and capacity expansion projects in Pennsylvania, a high-growth medical cannabis market.”
The Pennsylvania medical marijuana program has grown rapidly since it launched last year, and currently has about 180,000 registered patients. In addition to the Danville manufacturing facility, GTI operates seven open Rise™ stores in the state in the following locations: Carlisle, Erie, Hermitage, Latrobe, Mechanicsburg, Steelton and York, with licenses to open 11 additional stores.
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Green Thumb Industries