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 very first and only actual estate organization on the New York Stock Exchange (NYSE: IIPR) focused on the regulated U.S. cannabis market, announced currently that it closed on the acquisition of a home situated at 29600 Stephenson Highway in Madison Heights, Michigan.
The acquire cost for the home was $six.two million (excluding transaction expenses). Concurrent with the closing of the acquire, IIP entered into a lengthy-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 developing. In connection with the improvement of the home, IIP has agreed to present 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 health-related-use cannabis market, IIP partners with knowledgeable health-related-use cannabis operators and serves as a supply of capital by acquiring and leasing back their actual estate assets, in addition to providing other inventive actual estate-primarily based capital options.
“We have had the privilege of getting Holistic’s lengthy-term actual estate companion considering that 2017, and supporting them in their expansion more than the years with important development capital along the way,” mentioned Paul Smithers, President and Chief Executive Officer of IIP. “Josh and his group of committed pros have set a normal for item good quality, patient care and client knowledge that we are proud to help, and we are thrilled for the good results that they have accomplished.”
Holistic is a single of the biggest private, vertically-integrated multi-state operators in the cannabis market, with operations in California, Maryland, Massachusetts, Michigan, Pennsylvania and Washington D.C. Founded by Chief Executive Officer Josh Genderson in 2011, Holistic’s good results is driven by its exclusive and scalable method and mission to be the greatest location to function, shop and invest in the cannabis market. Holistic is committed to delivering exceptional cannabis solutions to individuals and consumers in an atmosphere of hugely focused client service and individualized patient care.
“IIP has been an superb actual estate companion, and we appreciate their unwaivering help in facilitating our expansion more than the previous 3-plus years,” mentioned Josh Genderson, Chief Executive Officer of Holistic. “We appear forward to operating closely with IIP in the improvement of this home and the vision we have for the neighborhood, making a state-of-the-art facility that produces the higher good quality, constant item, with a compassionate, client-focused knowledge for our individuals and consumers, and an operation that offers fantastic jobs and possibilities for profession advancement for regional residents.”
According to a Michigan Marijuana Regulatory Agency report, July 2020 total sales for health-related-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 situated 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 expenses) and had committed an extra 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 involve up to around $14.five million that may perhaps be funded in the future pursuant to IIP’s lease with a tenant at a single 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 knowledgeable, state-licensed operators for their regulated health-related-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. Further information and facts is obtainable at www.innovativeindustrialproperties.com.
Revolutionary Industrial Properties Forward-Seeking Statements
This press release includes statements that IIP believes to be “forward-hunting statements” inside the which means of the secure harbor provisions of the Private Securities Litigation Reform Act of 1995. All statements other than historical details, such as, without having limitation, statements relating to the acquisition and lease of the Michigan home, Holistic and the Michigan regulated cannabis market place, are forward-hunting statements. When employed in this press release, words such as we “expect,” “intend,” “plan,” “estimate,” “anticipate,” “believe” or “should” or the adverse thereof or equivalent terminology are commonly intended to recognize forward-hunting statements. Such forward-hunting 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 ought to not location undue reliance upon forward-hunting statements. IIP disclaims any obligation to update or revise any forward-hunting statements, irrespective of whether as a outcome of new information and facts, future events or otherwise.
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