IIP Expands Home Portfolio to 62 Properties in 16 States Comprising More than four.7 Million Square Feet
AN DIEGO–(Company WIRE)–Innovative Industrial Properties, Inc. (IIP), the initially and only actual estate firm on the New York Stock Exchange (NYSE: IIPR) focused on the regulated U.S. cannabis sector, announced currently that it closed on the acquisition of a home positioned at 29600 Stephenson Highway in Madison Heights, Michigan.
The acquire price tag for the home was $six.two million (excluding transaction fees). Concurrent with the closing of the acquire, IIP entered into a extended-term, triple-net lease agreement with a subsidiary of Holistic Industries Inc. (“Holistic”), which intends to operate the home as a regulated cannabis cultivation, processing and dispensing facility, upon completion of improvement of an around 63,000 square foot industrial constructing. In connection with the improvement of the home, IIP has agreed to deliver reimbursement of up to $18.eight million. Assuming complete reimbursement for the improvement of the home, IIP’s total investment in the home will be $25. million.
In addition to the Michigan home, IIP owns and leases to Holistic 3 other properties in Maryland, Massachusetts and Pennsylvania.
As the pioneering actual estate investment trust (REIT) for the healthcare-use cannabis sector, IIP partners with seasoned healthcare-use cannabis operators and serves as a supply of capital by acquiring and leasing back their actual estate assets, in addition to supplying other inventive actual estate-primarily based capital options.
“We have had the privilege of getting Holistic’s extended-term actual estate companion considering that 2017, and supporting them in their expansion more than the years with essential development capital along the way,” stated Paul Smithers, President and Chief Executive Officer of IIP. “Josh and his group of devoted pros have set a normal for item top quality, patient care and buyer practical experience that we are proud to assistance, and we are thrilled for the achievement that they have accomplished.”
Holistic is 1 of the biggest private, vertically-integrated multi-state operators in the cannabis sector, with operations in California, Maryland, Massachusetts, Michigan, Pennsylvania and Washington D.C. Founded by Chief Executive Officer Josh Genderson in 2011, Holistic’s achievement is driven by its exceptional and scalable method and mission to be the greatest spot to operate, shop and invest in the cannabis sector. Holistic is devoted to delivering exceptional cannabis goods to sufferers and prospects in an atmosphere of very focused buyer service and individualized patient care.
“IIP has been an great actual estate companion, and we appreciate their unwaivering assistance in facilitating our expansion more than the previous 3-plus years,” stated Josh Genderson, Chief Executive Officer of Holistic. “We appear forward to functioning closely with IIP in the improvement of this home and the vision we have for the neighborhood, producing a state-of-the-art facility that produces the higher top quality, constant item, with a compassionate, buyer-focused practical experience for our sufferers and prospects, and an operation that offers wonderful jobs and possibilities for profession advancement for nearby residents.”
According to a Michigan Marijuana Regulatory Agency report, July 2020 total sales for healthcare-use and adult-use cannabis had been around $109.six million, equating to around $1.three billion in sales on an annualized basis and representing a continued robust, month-to-month development. Michigan started regulated adult-use cannabis sales in December of final year. As of currently, IIP’s total investment, such as committed funding for future tenant improvements, for the properties IIP owns in Michigan is around $155.eight million.
As of September 1, 2020, IIP owned 62 properties positioned in Arizona, California, Colorado, Florida, Illinois, Maryland, Massachusetts, Michigan, Minnesota, New Jersey, New York, Nevada, North Dakota, Ohio, Pennsylvania and Virginia, totaling around four.7 million rentable square feet (such as around 1.7 million rentable square feet below improvement/redevelopment), which had been 99.three% leased (primarily based on square footage) with a weighted-typical remaining lease term of around 16. years. As of September 1, 2020, IIP had invested around $844.eight million in the aggregate (excluding transaction fees) and had committed an added around $245.9 million to reimburse particular tenants and sellers for completion of building and tenant improvements at IIP’s properties. These statistics do not incorporate up to around $14.five million that may perhaps be funded in the future pursuant to IIP’s lease with a tenant at 1 of IIP’s Massachusetts properties, as the tenant at that home may perhaps not elect to have IIP disburse these funds to the tenant and spend IIP the corresponding base rent on these funds. These statistics also treat IIP’s Los Angeles, California home as not leased, due to the tenant getting in receivership and its ongoing default in its obligation to spend rent at that place.
About Revolutionary Industrial Properties
Revolutionary Industrial Properties, Inc. is a self-advised Maryland corporation focused on the acquisition, ownership and management of specialized industrial properties leased to seasoned, state-licensed operators for their regulated healthcare-use cannabis facilities. Revolutionary Industrial Properties, Inc. has elected to be taxed as a actual estate investment trust, commencing with the year ended December 31, 2017. More details is accessible at www.innovativeindustrialproperties.com.
Revolutionary Industrial Properties Forward-Searching Statements
This press release includes statements that IIP believes to be “forward-searching statements” inside the which means of the protected harbor provisions of the Private Securities Litigation Reform Act of 1995. All statements other than historical information, such as, without having limitation, statements relating to the acquisition and lease of the Michigan home, Holistic and the Michigan regulated cannabis marketplace, are forward-searching statements. When employed in this press release, words such as we “expect,” “intend,” “plan,” “estimate,” “anticipate,” “believe” or “should” or the adverse thereof or comparable terminology are typically intended to determine forward-searching statements. Such forward-searching statements are topic to dangers and uncertainties that could trigger actual final results to differ materially from these expressed in, or implied by, such statements. Investors really should not spot undue reliance upon forward-searching statements. IIP disclaims any obligation to update or revise any forward-searching statements, irrespective of whether as a outcome of new details, future events or otherwise.
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