Revolutionary Industrial Properties Acquires California Home Portfolio and Enters into Extended-Term Leases with Licensed Operator
Acquisition Represents IIP’s Second Investment in California, Expanding Footprint to 18 Properties in 11 States
SAN DIEGO, April 16, 2019–(Company WIRE)–Innovative Industrial Properties, Inc. (IIP), the 1st and only actual estate enterprise on the New York Stock Exchange (NYSE: IIPR) focused on the regulated U.S. cannabis sector, announced right now that it closed on the acquisition of a 5-house portfolio in southern California, which comprises roughly 102,000 square feet of industrial space. This acquisition marks IIP’s second investment in California, following on IIP’s acquisition in Sacramento earlier this year.
The buy value for the southern California portfolio was roughly $27.1 million in the aggregate (excluding transaction charges). Concurrent with the closing of the buy, IIP entered into a extended-term, triple-net lease at every house with a licensed operator, which intends to continue to operate the properties as licensed cannabis cultivation, manufacturing, processing and distribution facilities in accordance with California regulations.
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 forge this new tenant partnership with 1 of the preeminent licensed operators in southern California. This operator is a accurate innovator in the sector, creating a powerful brand that is recognized for its constant higher high quality, and we are thrilled to group with them as their extended-term actual estate companion.
Paul Smithers, President and Chief Executive Officer of IIP
The California regulated cannabis market place is poised for explosive development in the coming years, as the regulated system continues to roll out and a concentrate is created on transitioning illicit sales to the regulated marketplace.
The operator is licensed for cannabis cultivation, nursery, manufacturing, processing, delivery and distribution. With its sophisticated developing methods, state-of-the-art facilities and study and improvement for the creation of new proprietary genetics, the tenant has created a distinguishing brand in the southern California market place, such as botanicals, concentrates and accessories.
As of April 16, 2019, IIP owned 18 properties positioned in Arizona, California, Colorado, Illinois, Maryland, Massachusetts, Michigan, Minnesota, New York, Ohio and Pennsylvania, totaling roughly 1,230,000 rentable square feet (such as roughly 159,000 rentable square feet below improvement/redevelopment), which have been 100% leased with a weighted-typical remaining lease term of roughly 14.9 years. As of April 16, 2019, IIP had invested roughly $191.three million in the aggregate (excluding transaction charges) and had committed an added roughly $34.7 million to reimburse particular tenants and sellers for completion of building and tenant improvements at IIP’s properties. IIP’s typical present yield on invested capital is roughly 14.9% for these 18 properties, calculated as (a) the sum of the present base rents, supplemental rent (with respect to the lease with PharmaCann LLC at 1 of IIP’s New York properties) and house management costs, divided by (b) IIP’s aggregate investment in these properties (excluding transaction charges and such as aggregate possible improvement/redevelopment funding and tenant reimbursements of roughly $34.7 million).
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. Further info is offered at www.innovativeindustrialproperties.com.
Original press release
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