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 sale-leaseback transactions with subsidiaries of
Columbia Care Inc. (Columbia Care) for two properties in New
Jersey, an industrial building comprising approximately 50,000
square feet and a retail location comprising approximately 4,000
square feet.
The purchase prices for the properties were approximately $12.4
million in total (excluding transaction costs). Concurrent with the
closings of the purchases, IIP entered into a long-term, triple-net
lease agreement for each property with a subsidiary of Columbia
Care, which intends to continue to operate the retail property as a
regulated medical-use cannabis dispensary and the industrial
property as a regulated medical-use cannabis cultivation and
processing facility. Columbia Care is expected to complete
additional tenant improvements for the industrial property, for
which IIP has agreed to provide reimbursement of up to $1.6
million. Assuming full reimbursement for the tenant improvements,
IIP’s total investment in the two properties will be approximately
$14.0 million.
Columbia Care (NEO: CCHW) (CSE: CCHW) (OTCQX: CCHWF) (FSE: 3LP)
is one of the largest and most experienced cultivators,
manufacturers and providers of medical and adult-use cannabis
products and related services with licenses in 18 jurisdictions in
the United States and the European Union. Columbia Care has
completed more than 1.8 million sales transactions since inception
and working in collaboration with renowned and innovative teaching
hospitals and medical centers globally, continues to be a
patient-centered health and wellness company setting the standard
for compassion, professionalism, quality, care and innovation in
the cannabis industry.
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.
“Columbia Care is one of the preeminent cannabis operators in
the United States, and we are thrilled to introduce them as a new
tenant partner,” said Paul Smithers, President and Chief Executive
Officer of Innovative Industrial Properties, Inc. “As one of the
largest cannabis operators, Columbia Care is dedicated to providing
the highest quality products and services to patients and
customers, and we look forward to supporting them as a long-term
real estate capital partner in New Jersey, including providing the
additional real estate capital for further enhancements to their
cultivation and processing facility.”
Added Nicholas Vita, CEO of Columbia Care: “Partnering with IIP
provides Columbia Care with access to nondilutive capital that
offers flexibility and provides us with the ability to continue to
build and expand our cultivation, manufacturing, and retail
capabilities in the markets that matter most.”
Last month, Columbia Care announced the opening of the
dispensary location, as one of only three operators licensed to
dispense medical cannabis in the southern region of New Jersey, and
produced its first harvest this month at its cultivation and
processing facility. Similar to other states, New Jersey
authorities classified medical cannabis dispensaries as
“essential,” allowing them to remain open during the coronavirus
pandemic, while implementing additional safety and social
distancing protocols to protect the health of patient customers and
employees. Last month, the New Jersey Department of Health also
enacted a waiver that allows licensed operators to provide home
delivery of medical cannabis products to patients.
As of July 20, 2020, IIP owned 61 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 20, 2020, IIP
had invested approximately $820.4 million in the aggregate
(excluding transaction costs) and had committed an additional
approximately $213.3 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 leases of the properties,
Columbia Care 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/20200720005094/en/
Catherine Hastings Chief Financial Officer, Chief Accounting
Officer and Treasurer Innovative Industrial Properties, Inc. (858)
997-3332
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