IIP Expands Home Portfolio to 62 Properties in 16 States Comprising More than four.7 Million Square Feet
AN DIEGO–(Business enterprise WIRE)–Innovative Industrial Properties, Inc. (IIP), the initially and only genuine estate firm on the New York Stock Exchange (NYSE: IIPR) focused on the regulated U.S. cannabis business, announced now 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 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 genuine estate investment trust (REIT) for the healthcare-use cannabis business, IIP partners with seasoned healthcare-use cannabis operators and serves as a supply of capital by acquiring and leasing back their genuine estate assets, in addition to supplying other inventive genuine estate-primarily based capital options.
“We have had the privilege of becoming Holistic’s extended-term genuine estate companion considering 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 pros have set a normal for solution high-quality, patient care and consumer encounter that we are proud to assistance, and we are thrilled for the results that they have accomplished.”
Holistic is a single of the biggest private, vertically-integrated multi-state operators in the cannabis business, 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 special and scalable strategy and mission to be the finest location to function, shop and invest in the cannabis business. Holistic is devoted to delivering exceptional cannabis items to sufferers and buyers in an atmosphere of extremely focused consumer service and individualized patient care.
“IIP has been an outstanding genuine 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, building a state-of-the-art facility that produces the higher high-quality, constant solution, with a compassionate, consumer-focused encounter for our sufferers and buyers, and an operation that delivers good 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 have been around $109.six million, equating to around $1.three billion in sales on an annualized basis and representing a continued sturdy, month-to-month development. Michigan started regulated adult-use cannabis sales in December of final year. As of now, IIP’s total investment, like 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 (like around 1.7 million rentable square feet beneath improvement/redevelopment), which have 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 more around $245.9 million to reimburse specific tenants and sellers for completion of building and tenant improvements at IIP’s properties. These statistics do not consist of up to around $14.five million that could 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 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 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 seasoned, state-licensed operators for their regulated healthcare-use cannabis facilities. Revolutionary Industrial Properties, Inc. has elected to be taxed as a genuine estate investment trust, commencing with the year ended December 31, 2017. Added details is readily available at www.innovativeindustrialproperties.com.
Revolutionary Industrial Properties Forward-Hunting 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, like, without having limitation, statements concerning the acquisition and lease of the Michigan home, Holistic and the Michigan regulated cannabis marketplace, are forward-hunting statements. When utilized in this press release, words such as we “expect,” “intend,” “plan,” “estimate,” “anticipate,” “believe” or “should” or the unfavorable thereof or related terminology are typically intended to determine forward-hunting statements. Such forward-hunting statements are topic to dangers and uncertainties that could lead to actual final results to differ materially from these expressed in, or implied by, such statements. Investors must 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 details, future events or otherwise.
Organization Speak to:
Chief Monetary Officer, Chief Accounting Officer and Treasurer
Revolutionary Industrial Properties, Inc.