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 true estate business on the New York Stock Exchange (NYSE: IIPR) focused on the regulated U.S. cannabis business, announced right now that it closed on the acquisition of a house positioned at 29600 Stephenson Highway in Madison Heights, Michigan.
The buy price tag for the house was $six.two million (excluding transaction fees). Concurrent with the closing of the buy, IIP entered into a lengthy-term, triple-net lease agreement with a subsidiary of Holistic Industries Inc. (“Holistic”), which intends to operate the house as a regulated cannabis cultivation, processing and dispensing facility, upon completion of improvement of an about 63,000 square foot industrial constructing. In connection with the improvement of the house, IIP has agreed to offer reimbursement of up to $18.eight million. Assuming complete reimbursement for the improvement of the house, IIP’s total investment in the house will be $25. million.
In addition to the Michigan house, IIP owns and leases to Holistic 3 other properties in Maryland, Massachusetts and Pennsylvania.
As the pioneering true estate investment trust (REIT) for the health-related-use cannabis business, IIP partners with skilled health-related-use cannabis operators and serves as a supply of capital by acquiring and leasing back their true estate assets, in addition to supplying other inventive true estate-primarily based capital options.
“We have had the privilege of becoming Holistic’s lengthy-term true estate companion due to the fact 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 typical for item top quality, patient care and buyer knowledge that we are proud to help, and we are thrilled for the good results that they have accomplished.”
Holistic is one particular 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 good results is driven by its special and scalable method and mission to be the greatest spot to operate, shop and invest in the cannabis business. Holistic is devoted to delivering exceptional cannabis merchandise to sufferers and clients in an atmosphere of extremely focused buyer service and individualized patient care.
“IIP has been an exceptional true estate companion, and we appreciate their unwaivering help 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 house 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 knowledge for our sufferers and clients, 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 health-related-use and adult-use cannabis have been about $109.six million, equating to about $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, which includes committed funding for future tenant improvements, for the properties IIP owns in Michigan is about $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 about four.7 million rentable square feet (which includes about 1.7 million rentable square feet below improvement/redevelopment), which have been 99.three% leased (primarily based on square footage) with a weighted-typical remaining lease term of about 16. years. As of September 1, 2020, IIP had invested about $844.eight million in the aggregate (excluding transaction fees) and had committed an further about $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 about $14.five million that may perhaps be funded in the future pursuant to IIP’s lease with a tenant at one particular of IIP’s Massachusetts properties, as the tenant at that house 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 house 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 true estate investment trust, commencing with the year ended December 31, 2017. Extra details is obtainable at www.innovativeindustrialproperties.com.
Revolutionary Industrial Properties Forward-Searching Statements
This press release includes statements that IIP believes to be “forward-seeking 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, which includes, devoid of limitation, statements relating to the acquisition and lease of the Michigan house, Holistic and the Michigan regulated cannabis market place, are forward-seeking statements. When utilised in this press release, words such as we “expect,” “intend,” “plan,” “estimate,” “anticipate,” “believe” or “should” or the damaging thereof or related terminology are typically intended to determine forward-seeking statements. Such forward-seeking 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 need to not spot undue reliance upon forward-seeking statements. IIP disclaims any obligation to update or revise any forward-seeking statements, whether or not as a outcome of new details, future events or otherwise.
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Chief Monetary Officer, Chief Accounting Officer and Treasurer
Revolutionary Industrial Properties, Inc.