IIP Expands Portfolio to 4.5 Million Square
Feet in 16 States
Innovative Industrial Properties, Inc. (IIP), the first and only
real estate company on the New York Stock Exchange (NYSE: IIPR)
focused on the regulated U.S. cannabis industry, announced today
that it closed on the acquisition of a property in Blue Anchor, New
Jersey, which comprises approximately 111,000 square feet of
industrial space.
The purchase price for the property was $5.5 million (excluding
transaction costs). Concurrent with the closing of the purchase,
IIP entered into a long-term, triple-net lease agreement for the
property with a subsidiary of Curaleaf Holdings, Inc. (Curaleaf),
which intends to operate the property as a regulated medical
cannabis cultivation and processing facility. Curaleaf is expected
to complete additional tenant improvements for the property, for
which IIP has agreed to provide reimbursement of up to $29.5
million. Assuming full reimbursement for the tenant improvements,
IIP’s total investment in the property will be $35.0 million.
As the pioneering real estate investment trust (REIT) for the
medical-use cannabis industry, IIP partners with experienced
medical-use cannabis operators and serves as a source of capital by
acquiring and leasing back their real estate assets, in addition to
offering other creative real estate-based capital solutions.
“Curaleaf is one of the pre-eminent multi-state cannabis
operators, and we are thrilled to enter into this transaction as
their long-term real estate partner,” said Paul Smithers, President
and Chief Executive Officer of IIP. “Curaleaf and their team have
clearly demonstrated their commitment over time to delivering the
highest quality cannabis products to patients and consumers, and we
look forward to providing them the real estate capital to create
the optimal environments as they continue to fulfill that
vision.”
Curaleaf (CSE: CURA) (OTCQX: CURLF) is a leading vertically
integrated multi-state cannabis operator with a mission to improve
lives by providing clarity around cannabis and confidence around
consumption. As a high-growth cannabis company known for quality,
expertise and reliability, the company and its brands, Curaleaf and
Select, provide industry-leading service, product selection and
accessibility across the medical and adult-use markets. The company
currently operates in 18 states with 57 dispensaries, 15
cultivation sites and 24 processing sites. Curaleaf employs over
2,200 people across the United States.
New Jersey, with 8.9 million residents, has taken strong steps
in recent years under the leadership of Governor Phil Murphy to
expand access of the medical cannabis program to patients
throughout the state. In 2019, program rules were amended to allow
for oil-based formulations, and seven additional qualifying medical
conditions were added, including PTSD, anxiety, migraines and
certain types of chronic pain. Governor Murphy further expanded the
program when he signed the Jake Honig Compassionate Use Medical
Cannabis Act into law in July 2019, further expanding the program
by, among other things, increasing the monthly limit for cannabis
patients, allowing physician assistants and advanced practice
nurses to recommend medical cannabis to patients, and allowing the
dispensing of cannabis edibles to adult patients.
In addition, legalization of adult-use cannabis is on the ballot
for residents of New Jersey via the New Jersey Marijuana
Legalization Amendment in November of this year. According to a
Monmouth University survey reported in April 2020, 61% of
respondents indicated they would vote in favor of making adult-use
cannabis legal in the state, with only 34% opposed.
As of July 14, 2020, IIP owned 59 properties located in Arizona,
California, Colorado, Florida, Illinois, Maryland, Massachusetts,
Michigan, Minnesota, New Jersey, New York, Nevada, North Dakota,
Ohio, Pennsylvania and Virginia, totaling approximately 4.5 million
rentable square feet (including approximately 1.5 million rentable
square feet under development/redevelopment), which were 99.2%
leased (based on square footage) with a weighted-average remaining
lease term of approximately 16.1 years. As of July 14, 2020, IIP
had invested approximately $803.1 million in the aggregate
(excluding transaction costs) and had committed an additional
approximately $216.5 million to reimburse certain tenants and
sellers for completion of construction and tenant improvements at
IIP’s properties. These statistics do not include up to
approximately $7.0 million that may be funded in the future
pursuant to IIP’s lease with a tenant at one of IIP’s Illinois
properties, or approximately $17.1 million that may be funded in
the future pursuant to IIP’s lease with a tenant at one of IIP’s
Massachusetts properties, as the tenants at those properties may
not elect to have IIP disburse those funds to them and pay IIP the
corresponding base rent on those funds. These statistics also treat
IIP’s Los Angeles, California property as not leased, due to the
tenant being in receivership and its ongoing default in its
obligation to pay rent at that location.
About Innovative Industrial Properties
Innovative Industrial Properties, Inc. is a self-advised
Maryland corporation focused on the acquisition, ownership and
management of specialized industrial properties leased to
experienced, state-licensed operators for their regulated
medical-use cannabis facilities. Innovative Industrial Properties,
Inc. has elected to be taxed as a real estate investment trust,
commencing with the year ended December 31, 2017. Additional
information is available at
www.innovativeindustrialproperties.com.
Innovative Industrial Properties
Forward-Looking Statements
This press release contains statements that IIP believes to be
“forward-looking statements” within the meaning of the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995.
All statements other than historical facts, including, without
limitation, statements regarding the lease of the New Jersey
property, Curaleaf and the New Jersey regulated cannabis market,
are forward-looking statements. When used in this press release,
words such as we “expect,” “intend,” “plan,” “estimate,”
“anticipate,” “believe” or “should” or the negative thereof or
similar terminology are generally intended to identify
forward-looking statements. Such forward-looking statements are
subject to risks and uncertainties that could cause actual results
to differ materially from those expressed in, or implied by, such
statements. Investors should not place undue reliance upon
forward-looking statements. IIP disclaims any obligation to update
or revise any forward-looking statements, whether as a result of
new information, future events or otherwise.
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version on businesswire.com: https://www.businesswire.com/news/home/20200714005967/en/
IIP Contact: Catherine Hastings Chief Financial Officer, Chief
Accounting Officer and Treasurer Innovative Industrial Properties,
Inc. (858) 997-3332
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