Cannabis REIT On The Move: Innovative Industrial Properties Announces Q2 2021 Activity

Cannabis-focused real estate company Innovative Industrial Properties, Inc. IIPR on Tuesday revealed its operating, investment and capital markets activity from the past three months.

The San Diego-based company currently owns 72 properties totaling roughly 6.6 million rentable square feet across 18 states, including Arizona, California, Colorado, Florida, Illinois, Maryland, Massachusetts, Michigan, Minnesota, Nevada, New Jersey, New York, North Dakota, Ohio, Pennsylvania, Texas, Virginia and Washington.

IIP disclosed that from April 1, 2021 through Tuesday, it has invested roughly $1.6 billion and had committed an additional approximately $347.8 million to reimburse certain tenants and sellers for the finalization of construction and tenant improvements at its properties.

IIP’s Investments & Financing Opportunities

Over the last three months, the cannabis REIT acquired four properties in Massachusetts, Michigan and Pennsylvania.

In May, IIP purchased a Warren, Michigan-based property comprised of 85,000 sq. ft. of industrial space for around $10.3 million, on the heels of buying a property in Windsor for about $15.6 million.

Cannabis company Parallel sold its Pittsburgh, PA warehouse to an affiliate of IIP in May, for roughly $68 million.

In these transactions, IIP disclosed it had created new tenant relationships with Sozo Companies, Inc. and Temescal Wellness of Massachusetts, LLC while expanding its collaboration with Green Peak Industries LLC (Skymint), Harvest Health & Recreation Inc. HRVSF, Jushi Holdings Inc. JUSH JUSHF and Parallel.

In addition, IIP executed three lease amendments to enable additional tenant improvements on its properties in Florida and Pennsylvania.

On June 25, the company wrapped up a construction loan with a developer worth up to $18.5 million to build a 102,000 square foot cannabis cultivation and processing facility in California.

On May 25, IIP secured roughly $293 million in financing through the issuance of its unsecured senior notes, which carry a 5.50% interest per annum, payable semi-annually in arrears on May 15 and November 15 of each year. The maturity date of notes is May 25, 2026.

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