Innovative Industrial Properties, Inc. the first and only real estate company on the NYSE (NYSE: IIPR) that focused on the regulated U.S. cannabis industry recently announced that it has acquired a property in Pittsburgh, Pennsylvania with an approximate industrial space area of 51,000 square feet.
The property was acquired for $6.3 million (excluding transaction costs). In line with this, IIP has entered a long-term, triple-net lease agreement with Maitri Genetics LLC (Maitri) which plans to operate the property as a licensed medical-use cannabis cultivation and processing facility.
Note: since Cannin took a position in IIPR last July, the stock has doubled in value.
The Pittsburgh property marks IIP’s second acquisition in Pennsylvania. Maitri will be responsible for all improvements for which IIP has agreed to provide reimbursement of up to $10 million. This will bring IIP’s total investment to $16.3 million.
Innovative Industrial Properties work with medical-cannabis businesses by providing a source of capital by acquiring and leasing back their real estate assets, and other creative real estate-based capital funding.
Maitri currently operated licensed medical-use cannabis dispensaries in Uniontown and Pittsburgh, Pennsylvania. The company expects to receive its permanent medical-use cannabis cultivation and processing license at the property upon completion of the property redevelopment.
IIP owns 19 properties located in Arizona, California, Colorado, Illinois, Maryland, Massachusetts, Michigan, Minnesota, New York, Ohio and Pennsylvania. These properties have an approximate 1.3 million of rentable square feet including approximately 210,000 rentable square feet under development/redevelopment.
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