$300 million can buy an awful lot of marijuana... real estate.

Innovative Industrial Properties (IIPR -1.07%), the only cannabis-specialized real estate investment trust (REIT) on the stock market, is upsizing a previously announced debt issue. The company announced Thursday that its operating partnership's upcoming issuance of senior notes will be $100 million larger than the originally planned $200 million. 

Innovative added that the notes have been priced and that the issue, being effected in a private offering, is expected to close on May 25. The notes' interest rate is to be 5.5%, which will be paid semi-annually each May 15 and Nov. 15. Their maturity date is May 25, 2026.

Marijuana plant in a growing facility.

Image source: Getty Images.

The new securities are fully and unconditionally guaranteed by Innovative and its operating partnership's subsidiaries, the company wrote in its update. Also, they "will rank equally in right of payment with all of the Operating Partnership's existing and future senior unsecured indebtedness." This includes an issue of 3.75% exchangeable senior notes maturing in 2024.

As previously announced, the proceeds of the notes are to be used to invest in cannabis-specific properties. Innovative frequently adds to its portfolio: As of May, it owned 69 properties across 18 U.S. states. Among those are properties in New York and New Jersey, two populous states that recently legalized the recreational use of marijuana for adults.

Investors shouldn't be concerned about the extra debt load on Innovative, as borrowing is fundamental to the REIT business model. (Buying properties is expensive, after all.) Rather, they should take it as a sign that there was enough interest from lenders to expand this issue by a rich 50%.

The market is obviously seeing the bright side of this news. The stock closed the trading session up by 3.2% -- well ahead of the S&P 500's 1.1% gain.