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.

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