SAN DIEGO–(BUSINESS WIRE)–Innovative Industrial Properties, Inc. (IIP), the first and only New York Stock Exchange (NYSE:IIPR) listed real estate company focused on the regulated cannabis industry in the United States, today announced the closing of the acquisition of a property comprising approximately 104,000 square feet of industrial space in Webster, Massachusetts.
The purchase price for the property was $21.5 million (approximately $207 per square foot), which is fully constructed and operational as a regulated cannabis cultivation and processing facility. Concurrent with the closing of the purchase, IIP entered into a long-term triple net lease agreement for the property with an affiliate of Curaleaf Holdings, Inc. (CSE: CURA) (OTCQX: CURLF) (Curaleaf).
The property includes growing, manufacturing, office, administrative and storage space, and is estimated to produce approximately 32,000 pounds of cannabis flower per year. Along with this facility in Massachusetts, IIP owns and leases four other cultivation and processing facilities and three dispensaries in Illinois, New Jersey, North Dakota and Pennsylvania in Curaleaf, representing a total of approximately 578,000 square feet. squares. Curaleaf is IIP’s fifth largest tenant partner in terms of capital investment.
As a pioneering real estate investment trust (REIT) for the regulated cannabis industry, IIP partners with experienced, regulated cannabis operators and serves as a source of capital by acquiring and leasing their real estate assets, in addition to offer other creative real estate. capital-based solutions.
Based in Wakefield, Massachusetts, Curaleaf is one of the leading regulated cannabis operators in the United States, with a presence in 22 states, and is also the largest vertically integrated cannabis company in Europe. Curaleaf operates 26 grow sites totaling approximately 4.4 million square feet, 136 dispensaries, and has over 6,000 employees worldwide. Curaleaf is a vertically integrated operator in Massachusetts, with four dispensaries and two cultivation and processing facilities (including this facility).
Curaleaf reported total revenue of $338 million ($1.4 billion annualized) in the second quarter of 2022 and adjusted EBITDA of $86 million ($344 million annualized), reflecting sequential growth of quarter over quarter of these measures by 8% and 18%, respectively. Curaleaf also continued to strengthen its talented management team in 2022, including Ed Kremer as Chief Financial Officer, Camilo Lyon as Chief Investment Officer, Mitch Hara as Chief Strategy Officer and Tyneeha Rivers as Chief Resource Officer. human.
As of September 1, 2022, IIP owned 111 properties located in Arizona, California, Colorado, Florida, Illinois, Maryland, Massachusetts, Michigan, Minnesota, Missouri, Nevada, New Jersey, New York, North Dakota, Ohio, Pennsylvania, Texas, Virginia and Washington, representing a total of approximately 8.7 million leasable square feet (including approximately 2.1 million leasable square feet under development/redevelopment). As of September 1, 2022, IIP has committed approximately $2.4 billion across its portfolio, including capital invested to date (excluding transaction costs) and additional capital commitments to fund construction and improvements. future of IIP properties. These statistics do not include an $18.5 million loan commitment from IIP to a developer for the construction of a regulated cannabis cultivation and processing facility in California.
About Innovative Industrial Properties
Innovative Industrial Properties, Inc. is a self-administered Maryland corporation focused on acquiring, owning and managing specialty industrial properties leased to experienced state-licensed operators for their regulated cannabis facilities. Innovative Industrial Properties, Inc. has elected to be taxed as a real estate investment trust, effective for the year ended December 31, 2017. Additional information is available at www.innovativeindustrialproperties.com.
Innovative Industrial Properties Forward-Looking Statements
This press release contains statements that IIP considers to be “forward-looking statements” within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All statements other than historical fact, including but not limited to limiting, statements regarding Massachusetts Property and Curaleaf, are forward-looking statements. When used in this press release, words such as IIP “expects”, “intends”, “plans”, “estimates”, “anticipates”, “believes” or “should” or their negative or similar terminology are generally intended to identify forward-looking statements. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements. Investors should not place undue reliance on forward-looking statements. IIP disclaims any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.