Revolutionary Industrial Properties, a true estate investment trust (REIT) focused on the cannabis business, purchased a warehouse in Michigan from LivWell Holdings in a $42 million sales-leaseback deal.
San Diego-primarily based Revolutionary Industrial paid $19 million to LivWell Michigan for the 156,000-square-foot warehouse in Warren, Michigan.
LivWell Michigan, whose parent is Denver-primarily based LivWell Holdings, will spend up to $23 million in tenant improvements on the home, which will be reimbursed by Revolutionary Industrial, driving the final price tag tag up to $42 million.
The warehouse will be operated as a cannabis cultivation and processing operation when the redevelopment of the facility is completed.
This marks the initial deal Revolutionary Industrial has completed with LivWell, according to Paul Smithers, president and CEO of the REIT.
Smithers, in a release, described the transaction as the “beginning of our lengthy-term true estate partnership with LivWell.”
In addition to Michigan and Colorado, LivWell has operations in Oregon, Puerto Rico and Canada.
As of Oct. 9, Revolutionary Industrial owns 32 properties in Arizona, California, Colorado, Illinois, Maryland, Massachusetts, Michigan, Minnesota, Nevada, New York, Ohio and Pennsylvania. Collectively, the properties total about two.three million rentable square feet of space.
For additional on the Michigan transaction, click right here.
Revolutionary Industrial trades on the New York Stock Exchange as IIPR.
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