US (CO): Southern Colorado-based property acquired to build a 18,528 sq. ft. greenhouse

Power REIT acquired a 2.11 acre parcel in Crowley County, Colorado through a wholly owned subsidiary. The Property is located in a part of southern Colorado that offers a favorable business setting and climate for greenhouse cultivation.

As part of the transaction, Power REIT has agreed to fund the immediate construction of an 18,528 square foot greenhouse and processing facility for approximately $1.3 million including the land acquisition cost.

Concurrent with the acquisition of the Property, PropCo entered into a 20-year “triple-net” lease with Green Mile, which will operate a cannabis cultivation facility. "The lease requires Green Mile to pay all property related expenses including maintenance, insurance and taxes," Power REIT team explains. "After the initial 20-year term, Green Mile’s lease provides two, five-year renewal options. The lease also has personal guarantees from the owners of Green Mile."

"The lease requires Green Mile to maintain a medical cannabis license and to operate in accordance with all Colorado and municipal regulations while prohibiting retail sales of its products from the property."

David Lesser, Power REIT’s Chairman and CEO, commented, “This recent acquisition represents the latest iteration of an upgraded prototype greenhouse cultivation facility in Southern Colorado and supports our investment thesis of investing in sustainable greenhouse properties. We remain enthusiastic about expanding our greenhouse portfolio in Colorado, which should allow our tenant to compete favorably with indoor cultivation facilities by growing high quality cannabis at a competitive cost.”

Mr. Lesser continued, “We are optimistic about our current acquisition pipeline and hope to announce additional activity in the near term in Colorado as well as other states that allow for regulated cannabis growing and sales.”