Innovative Industrial Properties Expands Real Estate Partnership with Green Peak Innovations at Michigan Property
20 June 2019 - 6:37AM
Business Wire
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 today
that it entered into an amendment of the lease with Green Peak
Industries, LLC (also known as Green Peak Innovations, or GPI) at
10070 Harvest Park in Dimondale, Michigan, making available an
additional $18.0 million in funding for additional expansion of
their cannabis cultivation and processing facilities at the
property. The lease amendment also adjusted the base rent under the
lease to take into account the additional available funding and
extended the term of the lease agreement. Assuming full payment of
the additional funding, IIP’s total investment in the property will
be $31.0 million.
IIP originally acquired the Michigan property and entered into a
long-term lease with Green Peak Innovations in August 2018 in
mid-development. The 56,000 square foot industrial building,
utilized by Green Peak Innovations for its state-licensed cannabis
cultivation and processing activities, was completed earlier this
year. With this additional funding, Green Peak Innovations expects
to develop an additional 55,000 square feet of industrial space to
augment its operations.
Green Peak Innovations is the largest vertically integrated
medical-use cannabis license holder in Michigan, which is one of
the largest medical-use cannabis markets in the country. Earlier
this year, GPI raised over $30 million in additional capital to
continue its expansion in Michigan, and earlier this month
announced the signing of a definitive agreement to acquire one of
only 22 vertical licenses in Florida. Last month, GPI opened its
first of an anticipated 30 medical cannabis provisioning centers in
Michigan.
“We are thrilled to expand our real estate partnership with one
of the premier medical-use cannabis operators in the state of
Michigan, another example of our position as a long-term real
estate capital partner that our tenant operators can count on,”
said Paul Smithers, President and Chief Executive Officer of IIP.
“The GPI team is executing well on all fronts, and has gained a
tremendous reputation for its high quality medical cannabis
products.”
“We are extremely pleased to team again with IIP on this
expansion,” said Jeff Radway, GPI’s Chief Executive Officer. “IIP
acted quickly to effectively finance our key growth initiatives,
providing us with the capital we need to further enhance our
operations and meet the tremendous demand from patients throughout
the state. We look forward to working with them as we take our
industry-leading operating model across the country.”
About Innovative Industrial Properties
Innovative Industrial Properties, Inc. is a self-advised
Maryland corporation focused on the acquisition, ownership and
management of specialized industrial properties leased to
experienced, state-licensed operators for their regulated
medical-use cannabis facilities. Innovative Industrial Properties,
Inc. has elected to be taxed as a real estate investment trust,
commencing with the year ended December 31, 2017. Additional
information is available at
www.innovativeindustrialproperties.com.
Innovative Industrial Properties
Forward-Looking Statements
This press release contains statements that IIP believes to be
"forward-looking statements" within the meaning of the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995.
All statements other than historical facts, including, without
limitation, statements regarding GPI, the lease and lease amendment
and the Michigan regulated cannabis market, are forward-looking
statements. When used in this press release, words such as we
"expect," "intend," "plan," "estimate," "anticipate," "believe" or
"should" or the negative thereof or similar terminology are
generally intended to identify forward-looking statements. Such
forward-looking statements are subject to risks and uncertainties
that could cause actual results to differ materially from those
expressed in, or implied by, such statements. Investors should not
place undue reliance upon forward-looking statements. IIP disclaims
any obligation to update or revise any forward-looking statements,
whether as a result of new information, future events or
otherwise.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20190619005798/en/
Company Contact: Catherine Hastings Chief Financial Officer,
Chief Accounting Officer and Treasurer Innovative Industrial
Properties, Inc. (858) 997-3332
Innovative Industrial Pr... (NYSE:IIPR)
Historical Stock Chart
From Apr 2024 to May 2024
Innovative Industrial Pr... (NYSE:IIPR)
Historical Stock Chart
From May 2023 to May 2024