Innovative Industrial Properties Acquires 2 Properties, Signs Leases With Grassroots

Innovative Industrial Properties, Inc. IIPR said Monday it finalized two sale-leaseback transactions with GR Companies Inc. subsidiaries for two properties in Pennsylvania and North Dakota.

These two properties combined cover around 105,000 sq. feet of industrial space, and the purchase price was set to around $24.1 million in total.

At the same time, Innovative Industrial Properties signed a long-term, triple-net lease agreement for each property with Grassroots subsidiary, which would persist to run the properties as cannabis cultivation and processing facilities.

Grassroots should finish additional tenant improvements for the properties, such as 35,000 sq. foot renovation at the Pennsylvania property, which the company should support with around $13.2 million, in that manner making the total investment in the two properties of $37.3 million.

“We are thrilled to partner again with Grassroots as their real estate capital partner in Pennsylvania and North Dakota, on the heels of our transaction with Grassroots’ Illinois facility in October,” Paul Smithers, President and CEO of Innovative Industrial Properties said in a statement “Grassroots is an operator with a proven track record of bringing the highest quality products to market, resulting in tremendous brand recognition and patient and consumer loyalty. We are proud to team with them once again on these two facilities, providing an efficient capital solution for them to focus on expanding their presence in both states.”

Innovative Industrial Properties closed Monday at $75.26 per share.

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