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Ayr Wellness Secures Real Estate Financing for Florida Indoor Cultivation

Ayr will lease a 16-acre property in Ocala.

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Ayr Wellness Inc./BusinessWire

MIAMI — Ayr Wellness Inc., a leading vertically integrated U.S. multi-state cannabis operator, on Monday announced the closing of a triple-net lease transaction with Innovative Industrial Properties Inc. in Florida. 

Under the terms of the agreement, Ayr is leasing a 16-acre property comprising of 145,000 square feet of industrial space in Ocala, Florida, from IIP. Ayr plans to redevelop a 98,000 square-foot building within the property to serve as a regulated cannabis cultivation facility. IIP has committed to funding Ayr up to $30 million for the construction.

This transaction marks an expansion of Ayr’s long-term real estate partnership with IIP. Ayr previously partnered with IIP on an 11,000 square-foot processing facility in Ohio.

“We are proud to partner once again with IIP to create an attractive real estate financing solution,” said Brad Asher, chief financial officer of Ayr. “We estimate that construction will be complete in mid-2025, with the first harvest expected shortly thereafter. We believe there is strong demand for indoor flower in Florida within the existing $2.5 billion medical program. Additionally, if adult-use passes in the November ballot initiative, the construction of this indoor facility, coupled with our 64-store footprint and existing cultivation and production campus, further enhances AYR’s position to capitalize on that potential market opportunity.”

Florida currently boasts the largest market for medical-use cannabis in the United States. Looking ahead to November 2024, Floridians are poised to vote on the potential legalization of adult-use cannabis, requiring a 60% approval for passage. Should this initiative succeed, existing licensed medical cannabis operators could be granted authorization to extend their services to personal use sales.

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