Innovative Industrial Properties Signs Lease With Trulieve Cannabis Subsidiary

The cannabis-focused real estate company Innovative Industrial Properties, Inc IIPR announced Monday that it has acquired a property in Holyoke, Massachusetts for $3.5 million that includes around 150,000 square feet of industrial space from Trulieve Cannabis Corp. TCNNF.

Innovative Industrial Properties said it bought the property for $3.5 million and entered into a triple-net lease agreement with a Trulieve subsidiary with a 10-year term.

The subsidiary will provide compensation of up to $40 million that will be used for tenant renovations, according to Innovative Industrial Properties. 

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The initial annualized base rent is equal to 11% of the total acquisition price plus the compensation amount funded, the company said. 

“We are thrilled to add a tenant with the strength of credit and of the caliber of Trulieve to our tenant roster,” Paul Smithers, the president and chief executive officer of Innovative Industrial Properties, said in a statement.

“Through its dedication to providing Florida patients with the highest quality products in a welcoming, compassionate environment, Trulieve has become the preeminent operator in Florida, and we look forward to supporting Trulieve as a long-term real estate capital partner as it continues to expand its operations in Massachusetts.”

Innovative Industrial Properties’s stock gained 75.7% over the last six months and was trading down by 0.2% at $107.37 at the time of publication Monday. 

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