Innovative Industrial Properties, Inc. (IIP), the first and only real estate company on the New York Stock Exchange focused on the regulated U.S. cannabis industry, announced that it closed on the acquisition of a property in Illinois, and entered into a long-term lease with a subsidiary of 4Front Ventures Corp. The purchase price for the property was $6.5 million (excluding transaction costs). 4Front is expected to construct approximately 250,000 square feet of industrial space at the property, for which IIP has agreed to provide reimbursement of up to $43.75 million. Assuming full reimbursement for the construction, IIP’s total investment in the property is expected to be $50.25 million. 4Front intends to operate the property upon completion of construction as a licensed cannabis cultivation and processing facility. IIP also owns and leases to subsidiaries of 4Front regulated cannabis cultivation, processing, and dispensing facility in Massachusetts and a managed regulated cannabis cultivation and processing facility in Washington. Assuming full reimbursement for tenant improvements under the Illinois lease, IIP’s total investment in properties leased to 4Front is expected to be $83.25 million, encompassing approximately 431,000 square feet. As the pioneering real estate investment trust (REIT) for the regulated cannabis industry, IIP partners with experienced, regulated cannabis operators and serves as a source of capital by acquiring and leasing back their real estate assets, in addition to offering other creative real estate-based capital solutions.
Mmp News Author, Medical Marijuana Program Connection, 08/03/2021 20:10:00