Power REIT Acquires 10-Acre Property in Crowley County for Greenhouse Development
Power REIT, a real-estate investment trust (REIT) that owns real estate related to Controlled Environment Agriculture, has acquired a 10-acre property in Crowley County, through a wholly owned subsidiary (“PropCo”). The property will include the construction of a 12,000-square-foot greenhouse space and 12,880 square feet of support buildings and infrastructure that will be funded by Power REIT for a total capital commitment of approximately $2.9 million.
Power REIT has strategically located greenhouse investments across Southern Colorado with over 83 acres comprised of 383,328 square feet of Controlled Environmental Agricultural facilities in the form of greenhouses. This entire portfolio is currently leased to operators who are licensed for the cultivation of regulated cannabis at the properties.
Concurrent with the acquisition, PropCo entered into a 20-year “triple-net” lease with JKL2 Inc., which will operate the property as a cannabis cultivation facility.
David Lesser, Power REIT’s chairman and CEO, commented, “This transaction is with an established operator and provides additional diversification of portfolio risk. We continue to deploy capital at what we believe are attractive risk adjusted returns that benefit from the favorable economic and regulatory environments for cannabis cultivation in Crowley County Colorado.”
JKL2 Inc. is a strategic cultivation partner of WHT LBL LLC, a multi-state operator (MSO) based in Boulder. WHT LBL produces products for Colorado’s market-leading edible brands and distributes these products throughout the state. WHT LBL’s products are currently sold throughout Colorado and carried by the largest, best in class dispensaries in the state. JKL2’s cannabis cultivation facility will immediately add capacity and further secure WHT LBL’s flower and trim supply chain and provide for future growth. JKL2 Inc. is led by long-time cannabis veterans with over a decade of cultivation expertise and successes throughout the United States.
“We are extremely excited to have the backing of Power REIT to get this project off the ground,” stated Jill Lamoureux, co-founder and chief compliance officer of WHT LBL and partner of JKL2 Inc. “We believe this facility can quickly become a large-scale producer of high-quality cannabis and compete aggressively in the very active and growing Colorado market. Having been in the cannabis space for some time, it is no secret that financing has been one of the most challenging obstacles for growing cannabis companies. We are very excited to be working with Power REIT and would not be in the position to launch JKL2 without their support. They have been responsive to our needs, understand the industry, easy to work with, and ultimately, provided fair and equitable deal terms that allow for rapid, responsible growth.”
Commenting further on the transaction, Chelsey Joseph, co-founder and chief executive officer of WHT LBL and partner of JKL2 Inc. stated, “Power REIT’s dedication to sustainability and responsible cultivation practices in the cannabis market, makes working with them an easy decision and a much-needed resource to propel JKL2 to the next level. As a cannabis MSO focused on working with the fastest growing and most respected brands in the cannabis market, we are approached regularly by brands looking to enter the growing Colorado market. JKL2 strengthens our value proposition and allows us to confidently bring these beloved brands and products to the people of Colorado.”