Innovative Industrial Properties Inc (NYSE:IIPR) has acquired a new property in Warren, Michigan. This property, according to sources, measures about 156,000 square feet. The company seeks to utilize this industrial space in the best way possible. Innovative Industrial Properties is also pleased to move into a new long-term real estate partnership with LivWell, Michigan, LLC. This partner deals with cannabis products as well.
Thoughts of top officials
The President and Chief Executive Officer of IIP Paul Smithers disclosed details as to why they considered striking this partnership. This official says it was because of the attractive attributes associated with the partner. He described LivWell as a company with a remarkable track record that it has upheld in Colorado for over a decade. Smither says that the company will support LivWell in its business expansion plans in Michigan.
On the other hand, the Executive Director of LivWell Dean Heizer has heaped praises on IIP. He says that the company has a hardworking team that is so easy to work with. The official states that they look forward to continuing working with them. He also likes the way the business has grown to become a reliable real estate company in the dynamic industry.
Heizer opines, “With the ongoing expansion of our operations, we also plan to provide for well-paying jobs, educational and advancement opportunities for our employees and the broad community engagement that are just a few of the hallmarks of our company.”
Details about the deal
Reports from trusted sources indicate that that Innovative Industrial Properties spend $19.0 million to acquire the Michigan property. However, this figure doesn’t take into account the transaction costs.
On the other hand, LivWell has outlines that it wants to focus on making tenant improvements for the property. The company has also gotten into talks with Innovative Industrial Properties to discuss the way forward. The partner has promised to co-operate with LivWell by reimbursing it with about $23.0 million.
An official working with Innovative Industrial Properties has disclosed the total amount they will be spending on the undertaking. He says that assuming the full reimbursement will scale up their expenditure on the matter to $42.0 million.
The two business giants agree that the priority at the moment is to serve the people of Michigan with top quality products.