Benzinga | Jun 11, 2021 02:31PM EDT

Power REIT 8-K Shows Co. Entered 20-Year Triple-Net Lease With VinCann For Greenhouse Cultivation Facility Property In Craig County, Oklahoma

On June 11, 2021, Power REIT ("Power REIT" or the "Trust"), through a wholly owned subsidiary of the Trust ("PropCo"), in connection with the acquisition of a 9.35 acre propertyOn June 11, 2021, Power REIT ("Power REIT" or the "Trust"), through a wholly owned subsidiary of the Trust ("PropCo"), in connection with the acquisition of a 9.35 acre property located in Craig County, Oklahoma (the "Property"), entered into a 20 year triple-net lease (the "Lease") with VinCann, LLC (the "Tenant"). The Lease provides that the Tenant is responsible for paying all expenses related to the Property, including maintenance expenses, insurance and taxes. The Lease requires the Tenant to maintain a medical cannabis license and operate in accordance with all Oklahoma regulations with respect to its operations.



As part of the Lease, Power REIT agreed to fund approximately $550,000 of property improvements.



The Lease is structured whereby after an initial deferred rent period, the rental payments provide PropCo with a full return of its original invested capital over the next three years and thereafter, provide an approximately 13.0% return increasing 3% rate per annum.



The foregoing descriptions of the lease does not purport to be complete and are qualified in its entirety by reference to the complete text of the Lease, a copy of which is attached hereto as Exhibit 10.1 and is incorporated into this Current Report on Form 8-K by reference.