Grown Rogue International has entered into a long-term lease for a cultivation facility in the greater Minneapolis metropolitan area that has received local approval for cannabis cultivation.
The Facility, an approximately 109,000-square-foot building located in Fridley, Minnesota, was acquired by Rainbow for approximately $75 per square foot, and the Company has entered into a long-term lease with the Landlord at a monthly base rent of $0.73 per square foot. The Facility recently secured a conditional use permit for cannabis cultivation and is expected to support a phased build-out of up to 30,000 square feet of flower canopy, which reflects the maximum indoor flower canopy permitted in Minnesota. Construction of Phase I, approximately 10,000 square feet of flowering canopy and associated support infrastructure, is expected to commence in early 2026, with first product anticipated in early 2027.
"Rainbow Realty Group is pleased to partner with Grown Rogue on this flagship Minnesota cultivation project," said Kyle Shenfeld, CEO of Rainbow Realty Group. "We have been impressed by their track record as a disciplined, low-cost producer of craft-quality flower in competitive markets, and we believe this Facility is well positioned to serve the growing Minnesota market as adult-use sales develop."
"We appreciate Rainbow's support in partnering with us on this opportunity; they have been great to work with as we secured the Facility and the conditional use permit," said Obie Strickler, Chief Executive Officer of Grown Rogue. "We are pleased to have secured a building at an affordable rate, with ample power, that gives us the flexibility to expand to the current maximum allowed flower canopy in Minnesota of 30,000 square feet. We are highly conscious of our long-term occupancy costs and, between the structure of the Lease and our decision to fund the majority of tenant improvements from our balance sheet, we are confident we can be a low-cost producer of craft-quality cannabis for Minnesota customers."
For more information:
Grown Rogue
[email protected]
www.grownrogue.com
