Simultaneous with the acquisition, PropCo entered into a lease with an operator (“Sweet Dirt”) that is licensed for medical cannabis cultivation, processing and distribution at the property (“Tenant”). As part of the acquisition, PropCo will reimburse Tenant for $950,000 of the approximately $1.5 million Sweet Dirt has incurred to date related to the construction and will fund up to approximately $2.97 million of costs to complete the construction. Accordingly, Power REIT’s total investment in the property is approximately $4.92 million which translates to approximately $138 per square foot for a state of the art Controlled Environment Agriculture Greenhouse (“CEAG”).
After getting $15.5 million in debt financing, Power REIT (NYSE-AMEX: PW ) set aside a chunk of that cash for acquisitions. Today, it’s starting with a new cannabis cultivation facility in southern Colorado. The property, dubbed Maverick 5, spans 5,040 square-feet and, so far, costs the company $490,000. The Maverick Property was originally purchased for $150,000. Power REIT put an additional $340,000 into the project to build 5,040 square feet of greenhouse space. The deadline for project completion is mid-July. “We are pleased that the initial … Full story available on Benzinga.com
Power REIT’s investment in the expansion is $340,000 and the lease amendment is structured to provide additional straight-line annual rent of approximately $63,000, representing an estimated yield of over 18%. Power REIT acquired Maverick 5 on March 19, 2020 for $150,000. As part of the acquisition, the Trust agreed to fund the immediate construction of 5,040 square feet of greenhouse space and 4,920 square feet of head-house/processing space.
Power REIT (NYSE American: PW) announces that it has completed the acquisition of 5.2 acre property in southern Colorado for the construction of a greenhouse cultivation facility through a wholly owned subsidiary. Power REIT’s total investment will be approximately $1 million and has a lease that provided straight-line annual rent estimated to be approximately $192,000 which translates to an approximate 19% yield. Power REIT intends to focus on CEA related real estate for growing various crops, including cannabis.