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 genuine estate organization on the New York Stock Exchange (NYSE: IIPR) focused on the regulated U.S. cannabis sector, announced currently that it closed on the acquisition of a house situated at 29600 Stephenson Highway in Madison Heights, Michigan.
The obtain value for the house was $six.two million (excluding transaction expenses). Concurrent with the closing of the obtain, 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 around 63,000 square foot industrial constructing. In connection with the improvement of the house, IIP has agreed to supply 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 genuine estate investment trust (REIT) for the healthcare-use cannabis sector, IIP partners with skilled 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 lengthy-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 experts have set a typical for solution high quality, patient care and buyer expertise that we are proud to help, and we are thrilled for the achievement 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 achievement is driven by its exclusive and scalable strategy and mission to be the very best spot to function, shop and invest in the cannabis sector. Holistic is devoted to delivering exceptional cannabis merchandise to individuals and prospects in an atmosphere of hugely focused buyer service and individualized patient care.
“IIP has been an great genuine 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, building a state-of-the-art facility that produces the higher high quality, constant solution, with a compassionate, buyer-focused expertise for our individuals and prospects, and an operation that offers terrific 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 powerful, month-to-month development. Michigan started regulated adult-use cannabis sales in December of final year. As of currently, IIP’s total investment, which includes 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 (which includes 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 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 incorporate up to around $14.five million that may possibly 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 house may possibly 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 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. More facts is accessible at www.innovativeindustrialproperties.com.
Revolutionary Industrial Properties Forward-Hunting 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 information, which includes, with no limitation, statements concerning the acquisition and lease of the Michigan house, Holistic and the Michigan regulated cannabis market place, are forward-seeking statements. When made use of in this press release, words such as we “expect,” “intend,” “plan,” “estimate,” “anticipate,” “believe” or “should” or the adverse thereof or related terminology are commonly intended to recognize forward-seeking statements. Such forward-seeking statements are topic to dangers and uncertainties that could result in actual final results to differ materially from these expressed in, or implied by, such statements. Investors should really 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 facts, future events or otherwise.
Corporation Speak to:
Chief Economic Officer, Chief Accounting Officer and Treasurer
Revolutionary Industrial Properties, Inc.