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 located at 9410
Davis Highway in Windsor, Michigan.
The purchase price for the property was approximately $15.6
million (excluding transaction costs). Concurrent with the closing
of the purchase, IIP entered into a long-term, triple-net lease
agreement with Green Peak Industries LLC (also known as Skymint
Brands or Skymint), which intends to operate the property as a
regulated cannabis cultivation, processing and distribution
facility, upon completion of redevelopment of the approximately
175,000 square foot industrial building. In connection with the
redevelopment of the property, IIP has agreed to provide
reimbursement of up to approximately $14.4 million. Assuming full
reimbursement for the redevelopment of the property, IIP’s total
investment in the property will be $30.0 million.
In addition to this property, IIP owns and leases to Skymint
seven other properties in Michigan, including a cultivation and
processing facility and six retail locations, representing
approximately 262,000 square feet in the aggregate and a total
investment of approximately $57.6 million (including the commitment
to reimburse Skymint for redevelopment of this property).
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 have been Skymint’s long-term real estate partner since
2018, and are excited to partner with them again on the
redevelopment of this new property that is expected to dramatically
expand Skymint’s cannabis production capacity to meet the
tremendous demand across the state, and support Skymint’s continued
dispensary expansion plans,” said Paul Smithers, President and
Chief Executive Officer of IIP.
Skymint’s seasoned management team is led by Jeff Radway,
co-founder and CEO, with Skymint’s operations employing over 400
people. As one of the largest vertically integrated regulated
cannabis operators in Michigan, Skymint operates two indoor
cultivation facilities totaling approximately 74,000 square feet of
production space, a 200-acre outdoor cultivation area, two
processing facilities and twelve dispensaries, with plans to open
more than a dozen additional dispensaries over the next year.
“We are very happy to team again with IIP on this new property,
and appreciate all of their support in facilitating our expansion
over the past three years,” said Jeff Radway, Co-Founder and CEO of
Skymint. “IIP has been an instrumental real estate capital partner,
effectively addressing our expansion needs on our timeframes, and
we look forward to working closely with IIP on the redevelopment of
this property, creating a state-of-the-art facility that produces
the high quality, consistent products our patients and customers
have come to expect from us, with an operation that provides good
jobs, opportunities for career advancement for local residents and
financial support to our community.”
According to the Michigan Marijuana Regulatory Agency, total
regulated adult-use and medical-use cannabis sales in 2020 neared
$1.0 billion, continuing on a strong growth trajectory. As a part
of this growth, Leafly estimates that Michigan more than doubled
employment in the regulated cannabis industry in 2020 alone,
growing to over 18,000 jobs at the end of the year. As of today,
IIP’s total investment, including committed funding for future
tenant improvements, for the properties IIP owns in Michigan is
approximately $193.3 million.
As of April 19, 2021, IIP owned 69 properties located in
Arizona, California, Colorado, Florida, Illinois, Maryland,
Massachusetts, Michigan, Minnesota, Nevada, New Jersey, New York,
North Dakota, Ohio, Pennsylvania, Texas, Virginia and Washington,
representing a total of approximately 6.2 million rentable square
feet (including approximately 2.3 million rentable square feet
under development/redevelopment), which were 100% leased with a
weighted-average remaining lease term of approximately 16.7 years.
As of April 19, 2021, IIP had committed approximately $1.5 billion
across its portfolio, including capital invested to date (excluding
transaction costs) and additional capital commitments to fund
future 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 Skymint
Founded in 2018, SKYMINT Brands (formerly known as Green Peak
Innovations) is Michigan’s leading vertically integrated cannabis
company and the state’s largest medical and recreational license
holder. Built upon a “Happy People, Happy Plants” philosophy,
SKYMINT is dedicated to cultivating brands, elevating cannabis, and
changing the world. Acclaimed for the beauty of its retail
experience, SKYMINT grows, processes, markets, distributes, and
brings to market a full range of cannabis brands, including North
Cannabis™, Jolly Edibles™, Two Joints™, and SKYMINT X DNA GENETICS™
lines. SKYMINT Farms™ raises cannabis flower under the sun for
those customers who appreciate the artisanal quality of
seed-to-stash nurturing. SKYMINT Brands are perfect for daily
wellness, healing, or just getting high on life. Additional
information is available at www.skymintbrands.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 acquisition and lease of the
Michigan property, Skymint and the Michigan 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/20210419005157/en/
IIP Contact: Catherine Hastings Chief Financial Officer
Innovative Industrial Properties, Inc. (858) 997-3332
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