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SAN DIEGO – (Business Wire) – Innovative Industrial Properties, Inc. (IIP), the first and only
New York Stock Exchange (NYSE: IIPR) Real Estate Focused on
the regulated cannabis industry in the United States, announced today its closure on
the acquisition of real estate in Sacramento, California, which includes
approximately 43,000 square feet of industrial space. This acquisition
marks IIP's first investment in California and expands its portfolio to
ten American states.
The purchase price of the Sacramento property was about 6.7 USD.
millions of euros (excluding transaction costs). In parallel with the closure of
Upon purchase, IIP has entered into a long-term, triple-net lease agreement
with an experienced operator, who intends to operate the property as a
licensed cannabis plant in California
regulations. The seller of the property should finish
redevelopment of the building, for which IIP agreed to provide
reimbursement up to $ 4.8 million. Assuming the full refund of
redevelopment, the total IIP investment in the building will be
about $ 11.5 million.
As a pioneer real estate investment trust (REIT) for the
use of cannabis for medical use, IPI partners with experience in medical use
cannabis operators and serves as a source of capital by acquiring and
leasing of their real estate badets, in addition to offering other
creative capital solutions based on real estate.
"We are excited to add California to our portfolio," said Paul Smithers,
President and CEO of Innovative Industrial
Properties, Inc. "The tenant has a long history of success in service
patients in need in California, and we look forward to completing the
redevelopment of the property with their team, which will allow them to
greatly expand their reach. "
The tenant operated in the cannabis industry in California for ten
years, including seven years at the property, after receiving his
permanent cannabis retailer license for medical and adult use for his
dispensary in Sacramento, as well as temporary licenses for distribution
and culture. The tenant expects to receive his permanent cannabis
Cultivation permit on the property at the completion of the property
redevelopment.
California, with nearly 40 million inhabitants, was the first state to
allow the use of cannabis for medical purposes, by adopting the
Compbadion Care Act in 1996. In November 2016, California voters
approved the Adult Marijuana Consumption Act (Proposition 64), which allows
the sale of cannabis for adults, with the first licenses issued in 2018.
ArcView Market Research believes that regulated cannabis in California
spending will rise from about $ 2.5 billion in 2018 to $ 5.6 million
billion in 2022, slightly less than the total regulated imports in Canada.
Cannabis spending during this year of $ 5.9 billion.
As of February 8, 2019, IIP owned twelve properties located in Arizona,
California, Colorado, Illinois, Maryland, Mbadachusetts, Michigan,
Minnesota, New York and Pennsylvania, totaling approximately 1,070,000
rentable square feet (of which approximately 101,000 rentable square feet
feet under development / redevelopment), which were 100% leased to a
remaining weighted average lease term of approximately 14.3 years. From
February 8, 2019, IIP had invested approximately $ 156.3 million in
aggregated (excluding transaction costs) and committed an additional amount
approximately $ 22.6 million to reimburse some tenants and sellers
the completion of the construction and improvement of the tenants of the properties of the IIP.
The current average return on IPI's invested capital is about 15.2%
for these twelve properties, calculated as follows: (a) the sum of
base rents, additional rent (for lease with PharmaCann
LLC in one of the IPI buildings in New York) and property management fees,
divided by (b) the total investment of IIP in these buildings (excluding
transaction costs and cumulative potential included
development financing / redevelopment and expense reimbursement
approximately $ 22.6 million).
About innovative industrial properties
Innovative Industrial Properties, Inc. is a Maryland Self-Advised
company focused on the acquisition, ownership and management of
specialized industrial properties leased to experienced users holding a state license
operators for their regulated cannabis facilities for medical purposes.
Innovative Industrial Properties, Inc. chose to be taxed as a true
real estate investment trust for the fiscal 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, 1995.
statements other than historical facts, including, without limitation,
statements regarding the lease of the property in California, the tenant
and the regulated cannabis market in California, are looking to the future
statements. When used in this press release, words such as "we expect"
"intention", "plan", "estimate", "anticipate", "believe" or "should" or
negatives or similar terminology are generally intended for
identify forward-looking statements. These forward-looking statements are
subject to risks and uncertainties that could result in actual results
materially different from those expressed or implied in such
statements. Investors should not place undue reliance on themselves
forward-looking statements. IIP disclaims any obligation to
update or revise the forward-looking statements, whether as a result of
new information, future events or others.
See the source version on businesswire.com: https://www.businesswire.com/news/home/20190208005461/en/
Catherine Hastings
Chief Financial Officer, Chief Accountant
Officer and treasurer
Innovative Industrial Properties, Inc.
(858)
997-3332
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