The Pharm, LLC is one of the largest wholesalers of medical-grade cannabis in Arizona and operates in about half of Arizona's 99 retail dispensaries and markets under the brand "Sunday Goods."

This week, the company signed a new 15-year lease in what will be one of its larger commercial real estate transactions in the state.

Maryland-based Innovative Industrial Properties, Inc. specializes in long-term leasing of commercial real estate property used in the cannabis industry. The company says it will purchase 350,000 square feet of greenhouse and industrial space from Arizona-based wholesaler and grower, The Pharm, LLC for $15 million.

The transaction is the latest in what has become a growing sector of the commercial real estate industry, sometimes referred to as 420 properties. According to the announcement, the Arizona medical-use cannabis market had nearly 150,000 registered medical cannabis patients as of October of this year and that number is expected to grow. The transaction is expected to close in the fourth quarter.