SAN DIEGO–(BUSINESS WIRE)– Innovative Industrial Properties, Inc. (IIP), the primary and solely actual property firm on the New York Stock Exchange (NYSE: IIPR) targeted on the regulated U.S. hashish {industry}, introduced immediately that it closed on the acquisition of a property in Blue Anchor, New Jersey, which contains roughly 111,000 sq. toes of commercial house.

The buy worth for the property was $5.5 million (excluding transaction prices). Concurrent with the closing of the acquisition, IIP entered right into a long-term, triple-net lease settlement for the property with a subsidiary of Curaleaf Holdings, Inc. (Curaleaf), which intends to function the property as a regulated medical hashish cultivation and processing facility. Curaleaf is anticipated to finish further tenant enhancements for the property, for which IIP has agreed to offer reimbursement of as much as $29.5 million. Assuming full reimbursement for the tenant enhancements, IIP’s complete funding within the property can be $35.zero million.

As the pioneering actual property funding belief (REIT) for the medical-use hashish {industry}, IIP companions with skilled medical-use hashish operators and serves as a supply of capital by buying and leasing again their actual property belongings, along with providing different inventive actual estate-based capital options.

“Curaleaf is one of the pre-eminent multi-state cannabis operators, and we are thrilled to enter into this transaction as their long-term real estate partner,” mentioned Paul Smithers, President and Chief Executive Officer of IIP. “Curaleaf and their team have clearly demonstrated their commitment over time to delivering the highest quality cannabis products to patients and consumers, and we look forward to providing them the real estate capital to create the optimal environments as they continue to fulfill that vision.”

Curaleaf (CSE: CURA) (OTCQX: CURLF) is a number one vertically built-in multi-state hashish operator with a mission to enhance lives by offering readability round hashish and confidence round consumption. As a high-growth hashish firm recognized for high quality, experience and reliability, the corporate and its manufacturers, Curaleaf and Select, present industry-leading service, product choice and accessibility throughout the medical and adult-use markets. The firm presently operates in 18 states with 57 dispensaries, 15 cultivation websites and 24 processing websites. Curaleaf employs over 2,200 individuals throughout the United States.

New Jersey, with 8.9 million residents, has taken sturdy steps in recent times below the management of Governor Phil Murphy to broaden entry of the medical hashish program to sufferers all through the state. In 2019, program guidelines have been amended to permit for oil-based formulations, and seven further qualifying medical situations have been added, together with PTSD, nervousness, migraines and sure sorts of power ache. Governor Murphy additional expanded this system when he signed the Jake Honig Compassionate Use Medical Cannabis Act into regulation in July 2019, additional increasing this system by, amongst different issues, rising the month-to-month restrict for hashish sufferers, permitting doctor assistants and superior apply nurses to advocate medical hashish to sufferers, and permitting the dishing out of hashish edibles to grownup sufferers.

In addition, legalization of adult-use hashish is on the poll for residents of New Jersey by way of the New Jersey Marijuana Legalization Amendment in November of this 12 months. According to a Monmouth University survey reported in April 2020, 61% of respondents indicated they might vote in favor of creating adult-use hashish authorized within the state, with solely 34% opposed.

As of July 14, 2020, IIP owned 59 properties situated in Arizona, California, Colorado, Florida, Illinois, Maryland, Massachusetts, Michigan, Minnesota, New Jersey, New York, Nevada, North Dakota, Ohio, Pennsylvania and Virginia, totaling roughly 4.5 million rentable sq. toes (together with roughly 1.5 million rentable sq. toes below growth/redevelopment), which have been 99.2% leased (based mostly on sq. footage) with a weighted-average remaining lease time period of roughly 16.1 years. As of July 14, 2020, IIP had invested roughly $803.1 million within the mixture (excluding transaction prices) and had dedicated a further roughly $216.5 million to reimburse sure tenants and sellers for completion of building and tenant enhancements at IIP’s properties. These statistics don’t embrace as much as roughly $7.zero million that could be funded sooner or later pursuant to IIP’s lease with a tenant at one among IIP’s Illinois properties, or roughly $17.1 million that could be funded sooner or later pursuant to IIP’s lease with a tenant at one among IIP’s Massachusetts properties, because the tenants at these properties could not elect to have IIP disburse these funds to them and pay IIP the corresponding base hire on these funds. These statistics additionally deal with IIP’s Los Angeles, California property as not leased, because of the tenant being in receivership and its ongoing default in its obligation to pay hire at that location.

About Innovative Industrial Properties

Innovative Industrial Properties, Inc. is a self-advised Maryland company targeted on the acquisition, possession and administration of specialised industrial properties leased to skilled, state-licensed operators for his or her regulated medical-use hashish services. Innovative Industrial Properties, Inc. has elected to be taxed as an actual property funding belief, commencing with the 12 months ended December 31, 2017. Additional info is offered atwww.innovativeindustrialproperties.com.

Innovative Industrial Properties Forward-Looking Statements

This press launch comprises statements that IIP believes to be “forward-looking statements” inside the which means of the protected harbor provisions of the Private Securities Litigation Reform Act of 1995. All statements apart from historic info, together with, with out limitation, statements concerning the lease of the New Jersey property, Curaleaf and the New Jersey regulated hashish market, are forward-looking statements. When used on this press launch, phrases similar to we “expect,” “intend,” “plan,” “estimate,” “anticipate,” “believe” or “should” or the damaging thereof or related terminology are typically meant to establish forward-looking statements. Such forward-looking statements are topic to dangers and uncertainties that would trigger precise outcomes to vary materially from these expressed in, or implied by, such statements. Investors shouldn’t place undue reliance upon forward-looking statements. IIP disclaims any obligation to replace or revise any forward-looking statements, whether or not on account of new info, future occasions or in any other case.

Contact

IIP Contact:
Catherine Hastings
Chief Financial Officer, Chief Accounting Officer and Treasurer
Innovative Industrial Properties, Inc.
(858) 997-3332

 



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