Innovative Industrial Properties, Inc. (IIP), the first and only real estate company on the New York Stock Exchange (NYSE: IIPR) focused on the regulated U.S. cannabis industry, announced that it has acquired a property in Saxton, Pennsylvania, comprised of two buildings totalling approximately 266,000 square feet of industrial space.
You may want to consider adding IIPR to your portfolio.
The Pennsylvania property was purchased for $13 million (excluding transaction costs). Along with the purchase IIP entered into a long-term, triple-net lease agreement with a subsidiary of Green Leaf Medical, LLC (Green Leaf Medical), which intends to operate the property as a licensed medical-use cannabis cultivation and processing facility. Green Leaf Medical has redeveloped approximately 103,000 square feet of the industrial space for medical-use cannabis cultivation and processing, with the remaining approximately 163,000 square feet of industrial space available for future redevelopment.
Innovative Industrial Properties is a pioneer in the real estate investment trust (REIT) for the medical-use cannabis industry. The company works with experienced medical-use operators by providing capital through acquiring and leasing back real estate assets and/or offering creative real estate-based capital solutions.
Innovative Industrial Properties, Inc. (IIP) currently owns 21 properties located in Arizona, California, Colorado, Illinois, Maryland, Massachusetts, Michigan, Minnesota, New York, Ohio, and Pennsylvania. The properties have a total of 1.6 million rentable square feet (including approximately 221,000 rentable square feet under development/redevelopment). These were 100 percent leased with a weighted-average remaining lease term of approximately 15.1 years.
As of May 20, 2019, IIP had invested approximately $213.2 million in the aggregate (excluding transaction costs) and had committed an additional approximately $45.6 million to reimburse certain tenants and sellers for completion of construction and tenant improvements at IIP’s properties. IIP’s average current yield on invested capital is approximately 14.7% for these 21 properties.
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