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 comprising
approximately 104,000 square feet of industrial space in Taunton,
Massachusetts.
The purchase price for the property was $40.0 million
(approximately $384 per square foot), which is fully built out and
operational as a regulated cannabis cultivation, processing and
dispensing facility. Concurrent with the closing of the purchase,
IIP entered into a long-term, triple-net lease agreement for the
property with a subsidiary of TILT Holdings Inc. (TILT).
TILT was a tenant of the prior owner of the property, and
executed a purchase agreement with the prior owner to acquire the
property for $13.0 million (approximately $125 per square foot). In
addition, during TILT’s tenancy with the prior owner, TILT invested
in excess of $27.0 million (approximately $260 per square foot) of
its own funds in improvements to the building. IIP’s investment of
$40.0 million consists of the original purchase price for the
approximately 12-acre site and standard industrial building to the
prior owner and a portion of the costs invested in the building by
TILT for buildout of the facility, which included the HVAC,
electrical, plumbing, cultivation, extraction and processing room
buildouts and other building systems infrastructure necessary to
support regulated cannabis cultivation and processing. The property
consists of approximately 60,000 square feet of cultivation space,
8,000 square feet of production space (including a full commercial
kitchen and extraction facility), 2,400 square feet of retail space
and mechanical, office, administrative and storage space. The
property currently produces a wide variety of form factors, both
in-house and with third-party branded partners, including packaged
and pre-rolled flower, concentrates, edibles and vaporizers.
As the pioneering real estate investment trust (REIT) for the
regulated cannabis industry, IIP partners with experienced,
regulated 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.
TILT is a vertically integrated enterprise with a portfolio of
companies focused on inhalation technology and regulated cannabis
operations, and in 2021 generated approximately $203 million in
revenues. Jupiter Research LLC, a wholly-owned subsidiary of TILT
and leader in the vaporization segment, focuses on hardware design,
research, development and manufacturing with customers across the
United States, as well as Canada, Israel, Mexico, South America and
the European Union. TILT also conducts regulated cannabis
operations in Massachusetts, Pennsylvania, Ohio and New York
(through its partnership with the Shinnecock Indian Nation).
TILT owns a vertically integrated license in Massachusetts, with
its Taunton facility dually licensed for both medical and adult-use
cultivation, product manufacturing and retail. In addition to the
Taunton facility, TILT operates a dispensary in Brockton that is
licensed for both medical and adult-use cannabis, and expects
regulatory approval soon for an additional medical-use dispensary
in the city of Cambridge. TILT’s products recently were awarded
first-place gold in “solvent concentrates” and second-place silver
in the “edibles category” at the 2022 NECANN Canna Competition in
Boston.
According to the Massachusetts Cannabis Control Commission, 2021
regulated cannabis sales in Massachusetts were approximately $1.6
billion. Including this property, IIP owns nine properties in
Massachusetts, comprising approximately 879,000 rentable square
feet (including square footage under redevelopment) and
representing a total investment, including commitments to fund
future improvements, of approximately $282.7 million (approximately
$322 per square foot).
As of May 16, 2022, IIP owned 110 properties located in Arizona,
California, Colorado, Florida, Illinois, Maryland, Massachusetts,
Michigan, Minnesota, Missouri, Nevada, New Jersey, New York, North
Dakota, Ohio, Pennsylvania, Texas, Virginia and Washington,
representing a total of approximately 8.2 million rentable square
feet (including approximately 2.4 million rentable square feet
under development / redevelopment). As of May 16, 2022, IIP had
committed approximately $2.2 billion across its portfolio,
including capital invested to date (excluding transaction costs)
and additional capital commitments to fund future construction and
improvements at IIP’s properties. These statistics do not include
an $18.5 million loan from IIP to a developer for construction of a
regulated cannabis cultivation and processing facility in
California and up to $55.0 million that may be funded between June
15, 2022 and July 31, 2022 pursuant to IIP’s lease with a tenant at
one of IIP’s Pennsylvania properties, as the tenant at that
property may not elect to have IIP disburse those funds and pay IIP
the corresponding base rent on those funds.
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 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 Massachusetts property, TILT
and the Massachusetts regulated cannabis market, are
forward-looking statements. When used in this press release, words
such as IIP “expects,” “intends,” “plans,” “estimates,”
“anticipates,” “believes” 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/20220516006033/en/
IIP Contact: Catherine Hastings Chief Financial Officer
Innovative Industrial Properties, Inc. (858) 997-3332
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