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Innovative Industrial Properties buys Richmond, Va., asset

Innovative Industrial Properties Inc. paid approximately $11.8 million for a property in Richmond, Va., that is expected to consist of approximately 82,000 square feet of industrial space following completion of development.

The company entered into a long-term, triple-net lease agreement with a Green Leaf Medical LLC unit that aims to operate the property as a licensed medical-use cannabis cultivation, processing and dispensing facility upon completion of development.

The cannabis-focused real estate investment trust also agreed to provide reimbursement of up to about $8.0 million in connection with the completion of development, taking the company's total investment in the property to roughly $19.8 million, assuming full reimbursement.