Revolutionary Industrial Properties Acquires Michigan House and Enters Into Extended-Term Lease with LivWell
SAN DIEGO, October 09, 2019–(Business enterprise WIRE)–Innovative Industrial Properties, Inc. (IIP), the 1st and only genuine estate corporation on the New York Stock Exchange (NYSE: IIPR) focused on the regulated U.S. cannabis sector, announced now that it closed on the acquisition of a house in Warren, Michigan, which comprises roughly 156,000 square feet of industrial space.
The obtain value for the Michigan house was $19. million (excluding transaction charges). Concurrent with the closing of the obtain, IIP entered into a extended-term, triple-net lease agreement with LivWell Michigan, LLC, a licensee of LivWell Holdings, Inc. (LivWell), which intends to operate the house as a licensed cannabis cultivation and processing facility upon completion of redevelopment. LivWell is anticipated to total tenant improvements for the house, for which IIP has agreed to present reimbursement of up to $23. million. Assuming complete reimbursement for the tenant improvements, IIP’s total investment in the house will be $42. million.
As the pioneering genuine estate investment trust (REIT) for the health-related-use cannabis sector, IIP partners with skilled health-related-use cannabis operators and serves as a supply of capital by acquiring and leasing back their genuine estate assets, in addition to supplying other inventive genuine estate-primarily based capital options.
We are excited to announce the starting of our extended-term genuine estate partnership with LivWell.
Paul Smithers, President and Chief Executive Officer of IIP
LivWell has created a tremendous track record of achievement in Colorado in the course of the final decade, and we appear forward to supporting the fast expansion of their operations in Michigan.
Established in 2009, LivWell employs more than 700 personnel and is one particular of the preeminent licensed cannabis operators in Colorado with 18 dispensary places, in addition to operations in Oregon, Michigan, Puerto Rico and Canada. John Lord, Chief Executive Officer of LivWell, leads a extremely achieved management group and brings more than 30 years of enterprise management expertise to LivWell. Beneath Mr. Lord’s leadership, LivWell serves as a policy leader on nearby, national and federal levels, bringing its experience to help in the creation of sound statutory and regulatory frameworks for the sector.
“The IIP group has been wonderful to perform with, all through this transaction, and we appear forward to functioning with them in the extended-term as a verified, reputable genuine estate companion for this sector,” mentioned Dean Heizer, Executive Director of LivWell. “We are complete-speed ahead on our redevelopment of this house, developing to the specifications we will need to provide the highest good quality solutions to the folks of Michigan. With the ongoing expansion of our operations, we also strategy to present for nicely-paying jobs, educational and advancement possibilities for our personnel and the broad neighborhood engagement that are just a handful of of the hallmarks of our corporation.”
As of October 9, 2019, IIP owned 32 properties positioned in Arizona, California, Colorado, Illinois, Maryland, Massachusetts, Michigan, Minnesota, New York, Nevada, Ohio and Pennsylvania, totaling roughly two.three million rentable square feet (which includes roughly 843,000 rentable square feet below improvement/redevelopment), which had been 100% leased with a weighted-typical remaining lease term of roughly 15.9 years. As of October 9, 2019, IIP had invested roughly $317.9 million in the aggregate (excluding transaction charges) and had committed an more roughly $123.1 million to reimburse particular tenants and sellers for completion of building and tenant improvements at IIP’s properties. IIP’s typical existing yield on invested capital is roughly 14.1% for these 32 properties, calculated as (a) the sum of the existing base rents (just after the expiration of applicable base rent abatement or deferral periods), supplemental rent (with respect to the lease with PharmaCann LLC at one particular of IIP’s New York properties) and house management costs, divided by (b) IIP’s aggregate investment in these properties (excluding transaction charges and which includes aggregate possible improvement/redevelopment funding and tenant reimbursements of roughly $123.1 million). These statistics do not contain up to $40. million that may perhaps be funded in the future pursuant to IIP’s lease with Trulieve Cannabis Corp. at one particular of IIP’s Massachusetts properties, the more $four. million which may perhaps be requested by PharmaCann LLC at one particular of IIP’s Pennsylvania properties or $two. million that may perhaps be funded in the future pursuant to IIP’s lease with Holistic Industries, Inc. at one particular of IIP’s Massachusetts properties, as the tenants at these properties may perhaps not elect to have IIP disburse these funds to them and spend IIP the corresponding base rent on these funds.
About Revolutionary Industrial Properties
Revolutionary Industrial Properties, Inc. is a self-advised Maryland corporation focused on the acquisition, ownership and management of specialized industrial properties leased to skilled, state-licensed operators for their regulated health-related-use cannabis facilities. Revolutionary Industrial Properties, Inc. has elected to be taxed as a genuine estate investment trust, commencing with the year ended December 31, 2017. More details is readily available at www.innovativeindustrialproperties.com.
Original press release
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