Maitri Genetics LLC has entered into a long-term, triple-net lease agreement with San Diego-based Innovative Industrial Properties Inc. on a 51,000 square-foot industrial space in Pittsburgh acquired by IIP for approximately $6.3 million.
IIP, a publicly traded real estate investment trust focused on the regulated U.S. cannabis industry, has agreed to provide Maitri, a Southwestern Pennsylvania medical marijuana company, reimbursement of up to $10 million to complete tenant improvements for the building, which would bring IIP’s total investment in the property to approximately $16.3 million.
Maitri expects to be issued its permanent medical-use cannabis cultivation and processing license at the property upon completion of the property redevelopment. Maitri has raised $12 million over the past two years to launch and support its operations.
"We worked collaboratively with the IIP team to structure a transaction that provides us with the funding and support necessary to redevelop our property into an advanced cultivation and processing facility," Maitri CEO Corinne Ogrodnik said in a statement. "IIP is a market leader with sophisticated insight into this dynamic industry and we look forward to continuing our close work with them. Redevelopment of this facility will provide us with the highly controlled, specialized environment needed to produce the best quality medical cannabis products for our patients."
The Pittsburgh property marks IIP's second acquisition in Pennsylvania. As of April 24, 2019, IIP owned 19 properties located in Arizona, California, Colorado, Illinois, Maryland, Massachusetts, Michigan, Minnesota, New York, Ohio and Pennsylvania.