Power REIT Performs $2.1 Million Transaction In Colorado
Power REIT (NYSE: PW) this morning announced a small transaction in which it performed in Colorado. The company has acquired a 2.2 acre parcel of land in Crowley County, which will see greenhouse and processing space constructed.
The total commitment of the transaction has been pegged at $2.1 million for Power REIT, which includes the cost of the land acquisition. As part of the transaction, Power will be funding the construction of a 24,512 square foot greenhouse and processing facility on the property for its tenant, which is referred to as Gas Station, LLC.
In connection with the acquisition, a 20 year triple net lease was entered into with the tenant, whom is to operate a cannabis facility on the property. Also include is two five-year renewal options, and a personal guarantee from the owners of the firm.
The lease is expected to provide a straight-line annual rent of $301,000, which results in a funds from operations (FFO) yield of approximately 19% on the capital placed into the transaction.
Power REIT last traded at $37.63 on the NYSE.
Information for this briefing was found via Sedar and Power REIT. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
As the founder of The Deep Dive, Jay is focused on all aspects of the firm. This includes operations, as well as acting as the primary writer for The Deep Dive’s stock analysis. In addition to The Deep Dive, Jay performs freelance writing for a number of firms and has been published on Stockhouse.com and CannaInvestor Magazine among others.
