Power REIT has closed the acquisition of a greenhouse cultivation facility in Marengo Township, Michigan through a wholly owned subsidiary. The Property is comprised of approximately 556,000 square feet and is located in the “Marijuana Overlay District” of Marengo County which allows for unlimited cannabis cultivation licenses. The 61-acre property has existing plans in place to add 330,236 square feet and has additional land available for further expansion.
"The state-of-the-art “Dutch Venlo Style” greenhouse is 26 feet tall which helps control the growing environment," the Power REIT team explains. "The diffused glass roof is beneficial to plant growth and allows greater plant density. The greenhouse features advanced cultivation controls and a best-in-class irrigation/fertigation system. There are also two large, multi-functional boilers that heat and help dehumidify the greenhouse and also provide the crop with enhanced CO2 levels to improve plant yields. There is a 1-million-gallon hot water storage tank that allows the boilers to run during the day to provide enhanced CO2 to the plants for photosynthesis, but then use the stored heat at night or as otherwise needed. The greenhouse also includes an exceptional irrigation system with 500,000 gallons of feed tanks that can water the entire greenhouse in under 20 minutes. The irrigation system is configured with 12 different feed zones. This allows for precision crop feeding targeting each zone based on the plant growth stage and cultivar. This facility is labor-efficient with an under-bench radiant heating system that acts as a dual-purpose rail system for carts and other equipment to enhance labor efficiency."
David Lesser, Power REIT’s Chairman and CEO, commented, “This is a very exciting transaction for Power REIT – it is our largest acquisition to-date and one of our more complex transactions. Due to our flexible balance sheet and focused investment strategy on greenhouses, we were able to opportunistically acquire this property through a receivership process. The property is believed to be one of the largest cannabis greenhouse cultivation facilities in the United States. This property was previously used for cultivating red-bell peppers and demonstrates Power REIT’s ability strategically re-purpose existing greenhouse structures for cannabis cultivation.”