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 in Alachua,
Florida, which comprises approximately 295,000 square feet of
industrial space.
The purchase price for the property was $23.8 million (excluding
transaction costs). Concurrent with the closing of the purchase,
IIP entered into a long-term, triple-net lease at the property with
a subsidiary of Harvest Health & Recreation Inc. (Harvest)
(CSE: HARV, OTCQX: HRVSF), which intends to continue to operate the
property as a licensed cannabis cultivation and processing
facility. Harvest is expected to complete additional tenant
improvements for the property, for which IIP has agreed to provide
reimbursement of up to approximately $10.8 million. Assuming full
reimbursement for the tenant improvements, IIP’s total investment
in the property is expected to be approximately $34.6 million.
Founded in 2011, Harvest is a leading vertically integrated U.S.
multi-state operator with licensed operations in Arizona,
California, Colorado, Florida, Maryland, Nevada, North Dakota,
Pennsylvania and Utah, including 38 retail locations, 12
cultivation and processing locations and over 1,100 employees
across its operations.
“We are thrilled to form our new real estate partnership with
Harvest,” said Paul Smithers, President and Chief Executive Officer
of IIP. “Harvest has established a tremendous footprint in its four
core markets of Arizona, Florida, Maryland and Pennsylvania, and
continues to execute strongly on its targeted growth and expansion
in those markets. We look forward to working closely with Harvest
to complete the build out of additional enhancements and productive
capacity at the Alachua facility, which will enable their continued
expansion in Florida to meet the tremendous demand from the over
460,000 registered patients in the state, the largest registered
patient population of the 35 medical-use cannabis programs in the
United States.”
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.
Florida continues to represent one of the largest and one of the
fastest growing medical-use cannabis markets in the United States.
Floridians overwhelmingly supported the passage of the medical-use
cannabis program in 2016 with 71% voter approval. Qualifying
medical conditions for the program include, among others, cancer,
epilepsy, PTSD, HIV/AIDS and multiple sclerosis. According to the
Florida Office of Medical Marijuana Use (OMMU), as of January 15,
2021, there were over 460,000 qualified patients and over 2,700
qualified physicians in the medical-use cannabis program. Including
this property, IIP owns four properties in Florida, comprising
approximately 1.0 million rentable square feet (including square
footage under development or redevelopment) and representing a
total investment, including commitments to fund future development
and tenant improvements, of approximately $151.5 million.
As of January 25, 2021, IIP owned 67 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 5.7 million rentable square feet (including
approximately 2.1 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 25, 2021, IIP had committed approximately $1.4
billion by investing approximately $1.1 billion in the aggregate
(excluding transaction costs) and committing an additional
approximately $296.9 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 Harvest Health & Recreation Inc.
Headquartered in Tempe, Arizona, Harvest Health & Recreation
Inc. is a vertically integrated cannabis company and multi-state
operator. Since 2011, Harvest has been committed to expanding its
retail and wholesale presence throughout the U.S., acquiring,
manufacturing, and selling cannabis products for patients and
consumers in addition to providing services to retail dispensaries.
Through organic license wins, service agreements, and targeted
acquisitions, Harvest has assembled an operational footprint
spanning multiple states in the U.S. Harvest's mission is to
improve lives through the goodness of cannabis. We hope you'll join
us on our journey: https://harvesthoc.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 lease and redevelopment of the
Florida property, Harvest and the Florida 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/20210125005266/en/
Company Contact: Catherine Hastings Chief Financial Officer
Innovative Industrial Properties, Inc. (858) 997-3332
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