Innovative Industrial Properties (IIPR 0.20%) is opening its wallet to buy yet another property for its portfolio. The company announced Tuesday that it has acquired a 373,000 square foot parcel of land in Wimauma, Florida from Parallel, a marijuana company previously known as Surterra Wellness (and still the parent company of that brand). The price was $35.3 million, exclusive of transaction costs.

As has been its habit lately, Innovative -- a cannabis real estate investment trust (REIT) -- is leasing the property back to its partner. A Parallel subsidiary will be its tenant under a triple-net lease, and will be eligible for up to $8.2 million in reimbursement from Innovative for improvements carried out on the property.

Marijuana in a corporate grow space.

Image source: Getty Images.

Sale-leaseback deals are increasingly common in the cannabis industry, as they provide a ready source of funds for cash-strapped companies operating in the business.

Innovative's new Florida property comprises both industrial and greenhouse space, for the production and processing of cannabis and related goods.

Medical marijuana was legalized in Florida in 2016; the state has not yet sanctioned the sale or use of the recreational form of the drug. With its large population, Florida's medical cannabis market is sizable and lucrative. Parallel is a significant player in the retail segment, with 39 dispensaries throughout the state.

"[W]e expect the Wimauma facility to be a critical catalyst to Parallel's continued growth and expansion of operations to meet the tremendous patient need for high quality medical cannabis products throughout Florida," Innovative said in its press release heralding the deal.

On Wednesday, Innovative stock followed the general market trend downwards and sank by over 10% on the day.