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 โ€” 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 Ayrโ€™s long-term real estate partnership with IIP. Ayr previously partnered with IIP on an 11,000 square-foot processing facility in Ohio.

โ€œWe are proud to partner once again with IIP to create an attractive real estate financing solution,โ€ said Brad Asher, chief financial officer of Ayr. โ€œWe 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 AYRโ€™s position to capitalize on that potential market opportunity.โ€

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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