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SAN DIEGO–(Valium Online Reviews)–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 closed on the acquisition of a property in Quincy, Florida, which comprises five buildings totaling approximately 120,000 square feet of industrial space, from Trulieve Cannabis Corp. (Trulieve), a leading and top-performing cannabis company in the United States (CSE: TRUL & OTC: TCNNF).

Concurrent with the closing of the purchase, IIP entered into a triple-net lease agreement with a subsidiary of Trulieve, for continued operation as a licensed medical cannabis cultivation facility. The purchase price for the Florida property was $17.0 million (excluding transaction costs). The initial lease term is ten years, with two options to extend the term of the lease for five years each.

The initial annualized base rent is equal to 11% of the purchase price for the property. Earlier this year, IIP executed a sale-leaseback transaction with Trulieve for a 150,000 square foot industrial facility in Holyoke, Massachusetts for an initial purchase price of $3.5 million (excluding transaction costs), pursuant to which Trulieve is expected to complete tenant improvements for the building, for which IIP has agreed to provide reimbursement of up to $40.0 million.

As the pioneering real estate investment trust (REIT) for the medical-use cannabis industry, IIP partners with experienced medical-use 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.

“By its consistent dedication to patient-centric values from day one, Trulieve has become the preeminent operator in Florida, and we are thrilled to partner with them again on this project as a long-term real estate partner,”

said Paul Smithers, President and Chief Executive Officer of IIP.

“Within a few short years, the Florida medical cannabis market has witnessed remarkable growth, and Trulieve has played an invaluable role in the market by meeting that patient need.”

Trulieve is a publicly traded Canadian company and multi-state cannabis operator employing approximately 2,700 people with licenses in Florida, Massachusetts, California and Connecticut.

“It is great to team with IIP again on this transaction, providing us the real estate capital to continue to expand our capacity in one of the largest and most dynamic medical cannabis markets in the United States,”

said Kim Rivers, Chief Executive Officer of Trulieve.

“These newly-developed cultivation facilities provide us with the optimal controlled environments to continue to deliver the highest quality products to patients throughout the state of Florida.”

Florida represents one of the largest and one of the fastest growing medical-use cannabis markets in the United States. Floridians overwhelmingly supported the passage of the medical-use cannabis program in 2016 with 71% voter approval. Qualifying medical conditions for the program include, among others, cancer, epilepsy, PTSD, HIV/AIDS and multiple sclerosis. Smokable flower was initially banned; however, a bill removing the prohibition was signed into law in March 2019. According to the Florida Office of Medical Marijuana Use (OMMU), as of October 11, 2019, there were over 270,000 qualified patients and over 2,500 qualified physicians in the medical-use cannabis program.


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As of October 23, 2019, IIP owned 35 properties located in Arizona, California, Colorado, Florida, Illinois, Maryland, Massachusetts, Michigan, Minnesota, New York, Nevada, Ohio and Pennsylvania, totaling approximately 2.6 million rentable square feet (including approximately 832,000 rentable square feet under development/redevelopment), which were 100% leased with a weighted-average remaining lease term of approximately 15.6 years. As of October 23, 2019, IIP had invested approximately $371.6 million in the aggregate (excluding transaction costs) and had committed an additional approximately $133.0 million to reimburse certain tenants and sellers for completion of construction and tenant improvements at IIP’s properties. IIP’s average current yield on invested capital is approximately 13.8% for these 35 properties, calculated as (a) the sum of the current base rents, supplemental rent (with respect to the lease with PharmaCann LLC at one of IIP’s New York properties) and property management fees (after the expiration of applicable base rent abatement or deferral periods), divided by (b) IIP’s aggregate investment in these properties (excluding transaction costs and including aggregate potential development/redevelopment funding and tenant reimbursements of approximately $133.0 million). These statistics do not include up to $40.0 million that may be funded in the future pursuant to IIP’s lease with Trulieve at one of IIP’s Massachusetts properties, the additional $4.0 million which may be requested by PharmaCann LLC at one of IIP’s Pennsylvania properties or $2.0 million that may be funded in the future pursuant to IIP’s lease with Holistic Industries, Inc. at one of IIP’s Massachusetts properties, as the tenants at those properties may not elect to have IIP disburse those funds to them and pay IIP the corresponding base rent on those funds.


This article is written and published by The Cannabis Stock


Disclaimer : The Cannabis Stock wants to promote the cannabis market with the best publication on the market. The Cannabis Stock does not recommend selling or buying any of the company mentioned and is not responsible for any losses that may result.


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