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 signed a long-term lease with Holistic Industries Inc.
(Holistic) for its property located in Los Angeles, California.
As previously reported, Holistic entered into a definitive
agreement to acquire the retail, distribution, cultivation and
manufacturing licenses for cannabis operations from the tenant at
IIP’s Los Angeles, California property, which was in receivership.
Holistic closed on this transaction and concurrent with this
closing executed a long-term, triple-net lease with IIP for the
entire property. In connection with the planned redevelopment of
the property, IIP has agreed to provide reimbursement to Holistic
of up to $11.0 million. Assuming full reimbursement for the
redevelopment of the property, IIP’s total investment in the
property will be $24.0 million.
Including the California property, IIP owns and leases to
Holistic regulated cannabis cultivation and processing facilities
in Maryland, Massachusetts, Michigan and Pennsylvania, comprising a
total of approximately 333,000 square feet. Assuming full
reimbursement of tenant improvements under the leases, IIP’s total
investment in properties leased to Holistic is expected to be
$108.4 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.
“We are thrilled to partner once again with Holistic at our Los
Angeles property. We have a vision for this property and its
potential, and we believe Josh and his team are the best operators
to realize that vision, with their unwaivering dedication to
customers and patients and their proven success in other states to
execute successfully to fulfill that goal,” said Paul Smithers,
President and Chief Executive Officer of IIP. “We look forward to
supporting them through the redevelopment of this property to
recognize that potential.”
Holistic is one of the largest private, vertically-integrated
multi-state operators in the cannabis industry, with operations in
California, Maryland, Massachusetts, Michigan, Pennsylvania and
Washington D.C, and is expected to commence operations shortly in
Missouri and West Virginia. Founded by Chief Executive Officer Josh
Genderson in 2011, Holistic’s success is driven by its unique and
scalable approach and mission to be the best place to work, shop
and invest in the cannabis industry.
“We are very excited to team with IIP to redevelop this property
and create a state-of-the-art facility for the cultivation and
production of best-in-class cannabis products that are our
hallmark,” said Josh Genderson. “We will be significantly enhancing
the capacity of this facility, and look forward to growing with the
local community, providing career opportunities for local residents
and a property and operations that residents can be proud of.”
As of January 8, 2021, IIP owned 66 properties located in
Arizona, California, Colorado, Florida, Illinois, Maryland,
Massachusetts, Michigan, Minnesota, Nevada, New Jersey, New York,
North Dakota, Ohio, Pennsylvania, Virginia and Washington, totaling
approximately 5.4 million rentable square feet (including
approximately 2.0 million rentable square feet under
development/redevelopment), which were 100% leased with a
weighted-average remaining lease term of approximately 16.6 years.
As of January 8, 2021, IIP had committed approximately $1.3 billion
by investing approximately $1.0 billion in the aggregate (excluding
transaction costs) and committing an additional approximately
$294.7 million to reimburse certain tenants and sellers for
completion of construction and tenant improvements at IIP’s
properties.
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.
About Holistic Industries
Headquartered in Washington, D.C., Holistic Industries is one of
the leading private multi-state cannabis operators (MSO) in the
U.S. with operations in California, Maryland, Massachusetts,
Michigan, Pennsylvania, Washington D.C. and soon in Missouri and
West Virginia. Founded by Josh Genderson in 2011, Holistic
Industries has grown into a national medical and consumer goods
company, a cultivation and extraction network, and a
Liberty-branded retail dispensary chain. Holistic Industries was
founded to provide patients access to the highest-quality cannabis
medicines and has grown quickly with this ethos in mind. As
Holistic has entered adult-use markets, the company has built a
reputation for delivering exceptional products in a
customer-service oriented retail environment.
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 California
property, Holistic and the California 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.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210108005078/en/
Catherine Hastings Chief Financial Officer Innovative Industrial
Properties, Inc. (858) 997-3332
Innovative Industrial Pr... (NYSE:IIPR)
Historical Stock Chart
From Feb 2024 to Mar 2024
Innovative Industrial Pr... (NYSE:IIPR)
Historical Stock Chart
From Mar 2023 to Mar 2024