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 Blue Anchor, New Jersey, which comprises approximately 111,000 square feet of industrial space.
The purchase price for the property was $5.5 million (excluding transaction costs). Concurrent with the closing of the purchase, IIP entered into a long-term, triple-net lease agreement for the property with a subsidiary of Curaleaf Holdings, Inc. (Curaleaf), which intends to operate the property as a regulated medical cannabis cultivation and processing facility. Curaleaf is expected to complete additional tenant improvements for the property, for which IIP has agreed to provide reimbursement of up to $29.5 million. Assuming full reimbursement for the tenant improvements, IIP’s total investment in the property will be $35.0 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.
“Curaleaf is one of the pre-eminent multi-state cannabis operators, and we are thrilled to enter into this transaction as their long-term real estate partner,” said Paul Smithers, President and Chief Executive Officer of IIP. “Curaleaf and their team have clearly demonstrated their commitment over time to delivering the highest quality cannabis products to patients and consumers, and we look forward to providing them the real estate capital to create the optimal environments as they continue to fulfill that vision.”