IIP Expands Home Portfolio to 62 Properties in 16 States Comprising More than four.7 Million Square Feet
AN DIEGO–(Small business WIRE)–Innovative Industrial Properties, Inc. (IIP), the initial and only actual estate corporation on the New York Stock Exchange (NYSE: IIPR) focused on the regulated U.S. cannabis sector, announced right now that it closed on the acquisition of a home positioned at 29600 Stephenson Highway in Madison Heights, Michigan.
The obtain price tag for the home was $six.two million (excluding transaction expenses). Concurrent with the closing of the obtain, 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 roughly 63,000 square foot industrial constructing. In connection with the improvement of the home, IIP has agreed to give 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 sector, IIP partners with skilled 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 becoming Holistic’s extended-term actual estate companion given that 2017, and supporting them in their expansion more than the years with crucial development capital along the way,” stated Paul Smithers, President and Chief Executive Officer of IIP. “Josh and his group of devoted specialists have set a common for solution good quality, patient care and client encounter that we are proud to assistance, 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 sector, 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 one of a kind and scalable method and mission to be the greatest location to operate, shop and invest in the cannabis sector. Holistic is devoted to delivering exceptional cannabis goods to sufferers and clients in an atmosphere of extremely focused client service and individualized patient care.
“IIP has been an superb 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 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 solution, with a compassionate, client-focused encounter for our sufferers and clients, and an operation that delivers wonderful jobs and possibilities for profession advancement for neighborhood residents.”
According to a Michigan Marijuana Regulatory Agency report, July 2020 total sales for health-related-use and adult-use cannabis had been roughly $109.six million, equating to roughly $1.three billion in sales on an annualized basis and representing a continued powerful, month-to-month development. Michigan started regulated adult-use cannabis sales in December of final year. As of right now, IIP’s total investment, such as committed funding for future tenant improvements, for the properties IIP owns in Michigan is roughly $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 roughly four.7 million rentable square feet (such as roughly 1.7 million rentable square feet beneath improvement/redevelopment), which had been 99.three% leased (primarily based on square footage) with a weighted-typical remaining lease term of roughly 16. years. As of September 1, 2020, IIP had invested roughly $844.eight million in the aggregate (excluding transaction expenses) and had committed an added roughly $245.9 million to reimburse specific tenants and sellers for completion of building and tenant improvements at IIP’s properties. These statistics do not include things like up to roughly $14.five million that might 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 might 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 becoming 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 skilled, 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. Extra data is out there at www.innovativeindustrialproperties.com.
Revolutionary Industrial Properties Forward-Seeking Statements
This press release consists of statements that IIP believes to be “forward-hunting 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, with no limitation, statements concerning the acquisition and lease of the Michigan home, Holistic and the Michigan regulated cannabis marketplace, are forward-hunting statements. When made use of in this press release, words such as we “expect,” “intend,” “plan,” “estimate,” “anticipate,” “believe” or “should” or the unfavorable thereof or related terminology are frequently intended to recognize forward-hunting statements. Such forward-hunting statements are topic to dangers and uncertainties that could lead to actual outcomes 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, no matter whether as a outcome of new data, future events or otherwise.
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