Innovative Industrial Properties Inc (NYSE: IIPR), one of the largest real estate investment trusts catering to the U.S. cannabis industry, acquired a 51,000 square foot property in Pittsburgh, Pennsylvania for which it already signed a long-term lease agreement.
What Happened
The purchase price for the industrial property is $6.3 million excluding transaction costs. The company also entered into a long-term, triple-net lease agreement with Maitri Genetics that will operate the property as a licensed cannabis cultivation and processing facility for the state's medical market.
As part of the agreement, Maitri will conduct tenant improvements for the building and Innovative Industrial Properties will reimburse it to the tune of up to $10 million. This raises the total value of the REIT's investment in the property to $16.3 million.
Why This Is Important
The Pittsburgh property represents Innovative Industrial Properties' second acquisition in the state. The state legalized medical marijuana back in 2018, and the state Congress and Governor are working towards legalizing adult-use cannabis as well.
In this way, Innovative Industrial Properties owns 19 properties in 11 states that include around 1.3 million square feet of rentable space, including 210,000 square feet under development or redevelopment. All of the REIT's properties are leased with a weighted-average remaining lease term of around 14.9 years.
Related Links:
Cannabis REIT Innovative Industrial Properties Joins Small-Cap Index
Medical Cannabis Cultivator Green Peak Innovations Raises Million In Mezzanine Debt Round
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