Revolutionary Industrial Properties Acquires Michigan House and Enters Into Lengthy-Term Lease with LivWell
SAN DIEGO, October 09, 2019–(Enterprise WIRE)–Innovative Industrial Properties, Inc. (IIP), the initially and only actual estate organization on the New York Stock Exchange (NYSE: IIPR) focused on the regulated U.S. cannabis sector, announced these days that it closed on the acquisition of a house in Warren, Michigan, which comprises roughly 156,000 square feet of industrial space.
The acquire cost for the Michigan house was $19. million (excluding transaction charges). Concurrent with the closing of the acquire, 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 offer 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 actual estate investment trust (REIT) for the health-related-use cannabis sector, IIP partners with seasoned health-related-use cannabis operators and serves as a supply of capital by acquiring and leasing back their actual estate assets, in addition to supplying other inventive actual estate-primarily based capital options.
We are excited to announce the starting of our extended-term actual estate partnership with LivWell.
Paul Smithers, President and Chief Executive Officer of IIP
LivWell has created a tremendous track record of accomplishment in Colorado throughout the final decade, and we appear forward to supporting the speedy expansion of their operations in Michigan.
Established in 2009, LivWell employs more than 700 staff and is a single 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 very achieved management group and brings more than 30 years of company management encounter to LivWell. Below Mr. Lord’s leadership, LivWell serves as a policy leader on neighborhood, 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 excellent to operate with, all through this transaction, and we appear forward to operating with them in the extended-term as a confirmed, trusted actual estate companion for this sector,” mentioned Dean Heizer, Executive Director of LivWell. “We are complete-speed ahead on our redevelopment of this house, constructing to the specifications we have to have to provide the highest excellent merchandise to the men and women of Michigan. With the ongoing expansion of our operations, we also program to offer for effectively-paying jobs, educational and advancement possibilities for our staff and the broad neighborhood engagement that are just a couple of of the hallmarks of our organization.”
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 beneath 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 extra roughly $123.1 million to reimburse specific 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 (immediately after the expiration of applicable base rent abatement or deferral periods), supplemental rent (with respect to the lease with PharmaCann LLC at a single of IIP’s New York properties) and house management charges, 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 include things like up to $40. million that could be funded in the future pursuant to IIP’s lease with Trulieve Cannabis Corp. at a single of IIP’s Massachusetts properties, the extra $four. million which could be requested by PharmaCann LLC at a single of IIP’s Pennsylvania properties or $two. million that could be funded in the future pursuant to IIP’s lease with Holistic Industries, Inc. at a single of IIP’s Massachusetts properties, as the tenants at these properties could 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 seasoned, state-licensed operators for their regulated health-related-use cannabis facilities. Revolutionary Industrial Properties, Inc. has elected to be taxed as a actual estate investment trust, commencing with the year ended December 31, 2017. Extra facts is out there at www.innovativeindustrialproperties.com.
Original press release
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