Innovative Industrial Properties Inc (NYSE:IIPR) Acquires Industrial Space In Ohio For $10.6 Million: Signs Triple Net Lease Agreement With Cresco Labs Inc

Innovative Industrial Properties Inc (NYSE:IIPR) has acquired 50,000 Sq. Ft. of industrial space in Ohio for $10.6 million. The company signed a triple net lease accord with Cresco Labs Inc’s subsidiary. Cresco will use the industrial space for regulated cannabis processing and cultivation. Innovative Industrial will also pay $1.9 million to Cresco for additional tenant improvements on the property. It is the third lease back accord with Cresco. Innovative Industrial already signed two licensed cannabis processing and cultivation purchase and leaseback accords with Cresco in Illinois.

Partners with medical use cannabis operators

Innovative Industrial partners with several experience medical cannabis partners. It acquires the properties and leaseback and serves as the source of capital. Chief Executive Officer and President of Innovative Industrial, Paul Smithers, said the company is pleased to enhance its relationship with Cresco and its talented management team.

Benefit for consumers and patients

Cresco will continue to execute its business plans. It is ensuring the nationwide reach of operations and benefitting consumers and patients across the US. The company is contributing to the local communities and creating more jobs. Paul said he is thrilled to partner with Cresco in Ohio. This partnership will help to ensure the availability of trusted and high-quality products to needy patients.

The vertically integrated cannabis company – Cresco operates twenty-one cannabis dispensaries in the US. It holds thirty-one retail cannabis licenses and eighteen licensed cannabis manufacturing facilities. Some of the trusted and recognized brands of Cresco include Remedi, Cresco, and Mindy’s.

Co-founder and president of Cresco, Joe Caltabiano, said partnering with Innovative Industrial will help to improve its balance sheet and invest accrued funds into higher-yielding opportunities. The company will look forward to deepening its presence in those states with Innovative Industrial is one of the trusted providers for capital.

The licensed medical program in Ohio is in its infant stage and expecting the first sales in early 2020. It has nearly 80,000 patients in less than one year of commencing sales. The program has registered caregivers of 8,000 as of December 2019.

Innovative Industrial owns 48 properties

Innovative Industrial owns forty-eight properties in Minnesota, Florida, Colorado, Arizona, Michigan, Ohio, North Dakota, Virginia, Pennsylvania, Nevada, New York, Massachusetts, Maryland, and California.


Innovative Industrial Properties Inc (NYSE:IIPR) Takes Over Green Thumb Industries Inc (OTCMKTS:GTBIF) For $20.3 million

Innovative Industrial Properties Inc (NYSE:IIPR) has taken over Green Thumb Industries Inc (OTCMKTS:GTBIF) in a deal valued at $20.3 million. It is a sale and leaseback transaction. Green Thumb will incorporate changes to the Danville, Pennsylvania based cannabis processing and cultivation facility to increase production capacity significantly. It will get a refund of up to $19.3 million from Innovative Industrial for certain enhancements to the property from Innovative Industrial’s total investments in the property will climb to $39.6 million after all the reimbursements to Green Thumb.

Acquires and leaseback properties

Innovative Industrial enters into a pact with cannabis operators, who are experienced in medical cannabis operation, take over their properties, and lease that property back to them and provides capital for their operations.

The Cannabis consumer packaged goods firm – Green Thumb owns Rise and Essence Retail Stores. It owns thirteen production facilities and holds licenses for the ninety-six retail locations/ operations in twelve markets across the US.

Registered patient base is 180,000

Pennsylvania based medical-use cannabis dispensaries recorded their first sale last year. The registered patient count for the state-sponsored medical cannabis program at these dispensaries as of August 2019 is 180,000. It offers support for patients suffering from Tourette syndrome and anxiety disorders.

In September 2019, Green Thumb inaugurated another Rise store in Pennsylvania. It is the seventh store in operation supporting patients with medical use cannabis. The company also operates stores in Steelton, Erie, Carlisle, Mechanicsburg, York, and Latrobe.

Supports the lives of patients

Green Thumb is pride to operate as a leading cannabis operator in the nation. CEO and President of Innovative Industrial, Paul Smithers, is pleased to associate with Green Thumb to support their cannabis operations expansion for the patient care in Pennsylvania. Paul said Green Thumb has the dedication and a host of cannabis products to ensure the wellbeing of the patients and will have a positive impact on the lives of several patients.

Ben Kovler, CEO and founder of Green Thumb, said Innovative Industrial offers a real estate capital solution to support the expansion at its Danville based cultivation and processing plant. The deal allows the company to mobilize funds and address the high growth of medical cannabis and expand the projects.

Innovative Industrial has reported revenues of $11.2 million in Q3 2019. It is an increase of 112% when compared to the same quarter of last year. The company appointed Tracie Hager as the VP (Asset Management).


Innovative Industrial Properties Inc (NYSE:IIPR) Closes A Sale-Leaseback Deal With Grassroots

Innovative Industrial Properties Inc (NYSE:IIPR) closed on a sale-leaseback deal worth $10.5 million with a subsidiary firm of GR Companies Inc. for a property based in Litchfield. This property comprises around 70,000 square feet of an industrial area.

Triple-net lease deal

Concurrent with the agreement closure, Innovative Industrial finalized a triple-net lease deal for the property with Grassroots. The company would continue to run the property as registered cannabis grows and processing center. Grassroots is also anticipated to work on additional tenant developments for the property. This includes a planned expansion, for which the company will give reimbursement of up to around $17.7 million. Assuming full reimbursement, the company’s total investment in the leased property will be around $28.2 million.

Mitchell Kahn, the Founder and CEO of Grassroots expressed that associating with a proven real estate capital firm, was a logical choice for them. This helps them to free their funds to be redeployed into their operations. Innovative Industrial team has been acting quickly to address Grassroots real estate capital requirements with a perfect solution for them. With the expansion of production capacity, Grassroots can address the demand of customers and patients of Illinois. Kahn leads an extremely proficient management team with an exceptional track record of establishing and running highly successful firms in a broad range of markets, including finance, real estate, merchandising consumer products, and cannabis.

As a leading real estate investment trust for the medical-use cannabis market, Innovative Industrial partners with proficient medical-use cannabis firms and provides funds by acquiring and leasing back operators’ real estate assets.

Grassroots is one of the top cannabis operators, with its businesses in Illinois, Pennsylvania, North Dakota, Maryland, Ohio, Michigan, Nevada, Vermont, Connecticut, Arkansas, and Oklahoma.

Paul Smithers, the CEO and President of Innovative Industrial, expressed that they are thrilled to finalize this real estate deal with Grassroots. With their reputation for top-quality products and using their team’s deep expertise, Grassroots has become one of the top firms in the regulated cannabis market.


Innovative Industrial Properties Inc (NYSE:IIPR) Announces The Acquisition Of A Michigan Property

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.


Innovative Industrial Properties (NYSE:IIPR) Boosts Investment In California, Expands Portfolio To 18 Properties

Innovative Industrial Properties (NYSE:IIPR) is on an expansion drive as it sets its eyes on more cannabis-related real estate. In a recent news release, the company revealed the acquisition of an industrial space approximately 102,000 sq. ft. in size. The property is in California and it comprises of five units in total.

IIPR boasts two properties in California

Notably, the statement reports that IIPR spent about $27.1 million without including transaction costs to lay claim to the real estate. Interestingly, the company followed the acquisition with a long term lease agreement with a licensed cannabis operator. In particular, the operator will use the properties to cultivate cannabis. In addition, the lessee will manufacture cannabis products as well as processing and distributing the products subject to existence regulations.

For starters, the acquisition of the property becomes the second investment by IIPR in California this year. In mid-February, the company agreed to take up a 43,000 sq. ft. industrial space in Sacramento for $6.7 million. Concurrently, the company agreed to lease the property to an experienced operator who would use it for developing a facility for cultivation of cannabis. Further, the company revealed that the seller of property would do some redevelopment on the real estate before complete handover. As such, IIPR agreed to reimburse the costs of redevelopment which will take the total acquisition cost to $11.5 million.

California has huge potential for revenue growth

Speaking in the aftermath of the acquisition of the Sacramento property, Paul Smithers, President and CEO of IIPR expressed his confidence in the incoming tenant. Further, he said that the redevelopment of the property would help the tenant to expand their reach significantly. On the tenant of the second property in California, the CEO said that he has confidence in the innovator mentality of the new tenant.

California’s regulated cannabis market is very critical to companies that want to grow and capture as much revenue as possible. With a total population of residents in the region of 40 million, the state has a huge population of marijuana users. Also, the state has a favorable marijuana track record with the first legal recognition of the therapeutic abilities of the substance coming in 1996. Also, IIPR’s interest in California adds to properties spread in 10 other states including Colorado and New York.


Innovative Industrial Properties Inc (NYSE:IIPR) Decides to Invest $300 Million in Cannabis Cultivation for Medical Use

Innovative Industrial Properties Inc (NYSE:IIPR) has staged a decision to invest $300 million to cultivate cannabis for medical use. The company will generate the funds through the securities offering. IIPR is filing a prospectus for a mixed securities offering.

Innovative Industrial Properties Inc Purchases Massachusetts Based Property

IIPR has purchased an industrial space spanning an area of fifty five thousand sq. ft. located in Massachusetts for $12.75 million.

Consequent to this acquisition, the company has signed a lease accord with Holistic Industries, Inc. IIPR will use the acquired property for the cultivation of cannabis for medical use as permitted legally in Massachusetts.

The lease agreement is valid for a period of 20 years. The company has the right to extend the agreement for another 15 years. The annual rental for the property is fixed at $1,912,500 initially.

The annual rent is to be increased at a rate of 3.25% every year after the first year for the complete 20 years. In return, Holistic Industries will pay a fee of 1.5% of the rent for the property management to IIPR.

The population in Massachusetts is estimated at 6.9 million. It has approved cultivation of cannabis for medical use by a vote in the year 2012. The first sale of the cannabis was reported in the year 2014.

Around fifty one thousand active patients are taking the treatment using medical cannabis in thirty six medical dispensaries registered in Massachusetts. The medical conditions being treated using medical cannabis are the chronic back pain, depression, anxiety, multiple sclerosis, HIV/AIDS, and cancer.

Cannabis for Medical use in Massachusetts

The voters in Massachusetts have also given their nod for adult cannabis use in 2016. The first sale of adult use cannabis will take place in 2018 under a regulated program.

The spending of cannabis for adult use is expected to reach $380 million in the year 2018 and likely to grow to $1.2 billion by the year 2022.

CEO and President of IIPR, Paul Smithers is expressed happiness to close this deal with Holistic Industries. The company is supporting Holistic Industries as a long time partner.

Holistic Industries CEO, Josh Genderson commenting on this deal said it was smooth to work the team of IIPR during the entire transaction. The company will use the funds for its expansion program.

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