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 very first and only true estate firm on the New York Stock Exchange (NYSE: IIPR) focused on the regulated U.S. cannabis market, announced these days that it closed on the acquisition of a home situated at 29600 Stephenson Highway in Madison Heights, Michigan.
The obtain value for the home was $six.two million (excluding transaction charges). 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 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 true estate investment trust (REIT) for the healthcare-use cannabis market, IIP partners with knowledgeable healthcare-use cannabis operators and serves as a supply of capital by acquiring and leasing back their true estate assets, in addition to providing other inventive true estate-primarily based capital options.
“We have had the privilege of getting Holistic’s extended-term true estate companion because 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 committed experts have set a common for solution top quality, patient care and buyer encounter that we are proud to assistance, and we are thrilled for the results that they have accomplished.”
Holistic is 1 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 results is driven by its exceptional and scalable strategy and mission to be the finest location to perform, shop and invest in the cannabis market. Holistic is committed to delivering exceptional cannabis items to individuals and shoppers in an atmosphere of very focused buyer service and individualized patient care.
“IIP has been an fantastic true 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 top quality, constant solution, with a compassionate, buyer-focused encounter for our individuals and shoppers, and an operation that gives fantastic jobs and possibilities for profession advancement for neighborhood residents.”
According to a Michigan Marijuana Regulatory Agency report, July 2020 total sales for healthcare-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 robust, month-to-month development. Michigan started regulated adult-use cannabis sales in December of final year. As of these days, IIP’s total investment, like 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 situated 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 (like roughly 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 roughly 16. years. As of September 1, 2020, IIP had invested roughly $844.eight million in the aggregate (excluding transaction charges) and had committed an further roughly $245.9 million to reimburse particular 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 could 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 could 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 healthcare-use cannabis facilities. Revolutionary Industrial Properties, Inc. has elected to be taxed as a true estate investment trust, commencing with the year ended December 31, 2017. Extra information and facts is offered at www.innovativeindustrialproperties.com.
Revolutionary Industrial Properties Forward-Searching Statements
This press release consists of 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, like, without having limitation, statements with regards 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 damaging thereof or related terminology are normally intended to recognize forward-hunting statements. Such forward-hunting statements are topic to dangers and uncertainties that could bring about actual final results to differ materially from these expressed in, or implied by, such statements. Investors should really not location undue reliance upon forward-hunting statements. IIP disclaims any obligation to update or revise any forward-hunting statements, regardless of whether as a outcome of new information and facts, future events or otherwise.
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Revolutionary Industrial Properties, Inc.