IIP Commits Additional $45.0 Million for
Ground-Up Development of a 98,000-Sq.-Ft. Indoor Cultivation
Facility and Additional Enhancements to Existing Facilities at the
Property
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 entered into an amendment of the lease with PharmaCann Inc.
(PharmaCann) in Hamptonburgh, New York, making available $45.0
million in funding for the development of a new 98,000-square-foot
industrial building for cultivation and significant enhancements in
production capacity and additional upgrades at the existing
127,000-square-foot facility. The lease amendment also adjusted the
base rent under the lease to take into account the additional
available funding for the development and qualifying improvements
to the existing facilities. Assuming full payment of the additional
funding, IIP’s total investment in the 225,000-square-foot property
will be $108.5 million (approximately $482 per square foot).
IIP originally acquired the New York property situated on
approximately 42 acres of land for $30.0 million (approximately
$236 per square foot) and entered into a long-term lease with
PharmaCann in 2016, for a newly-constructed, 127,000-square-foot
cannabis cultivation and processing facility, comprised of a
26,000-square-foot “headhouse” for processing and two
50,500-square-foot greenhouse cultivation buildings. The
transaction was structured as a sale-leaseback, with the $30.0
million total investment based on PharmaCann’s cost to acquire the
land and develop the 127,000-square-foot property, which included
the HVAC, electrical, plumbing and other building systems
infrastructure necessary to support regulated cannabis cultivation
and processing.
In late 2020 and early 2021, IIP committed an additional $33.5
million, of which approximately $15.2 million has been disbursed to
date for verified costs for specific infrastructure enhancements to
the existing cultivation buildings and headhouse. Those
enhancements included the addition of two trim and dry rooms, the
build out of the balance of one of the greenhouse buildings for
additional cultivation space and additional upgrades to the other
greenhouse building. After additional review of proposed expansion
plans, PharmaCann determined to move forward with the construction
of an industrial cultivation building as described below, in lieu
of the previously planned 40,000-square-foot additional greenhouse
facility.
IIP’s $45.0 million additional capital commitment, along with
the remaining unfunded proceeds from the prior allowance, is
expected to be utilized for the ground-up development of an
approximately 98,000-square-foot, three level indoor cultivation
facility, including a subterranean level to house specialized
mechanical and electrical equipment for cultivation and a penthouse
level for additional cultivation support. Eligible direct costs for
the project subject to reimbursement by IIP pursuant to the lease
and associated development agreement for the project include site
planning and preparation, base building construction and the
enhanced HVAC, electrical, mechanical, fertigation and other
building systems required for indoor cannabis cultivation.
PharmaCann is also expected to complete additional renovations for
the existing facility, including further infrastructure upgrades in
the greenhouses and process optimization renovations in the
headhouse, the costs of which will be eligible for reimbursement
from IIP’s capital commitment.
In addition to this facility in New York, IIP owns and leases to
PharmaCann five regulated cannabis dispensaries and five
cultivation and processing facilities in Colorado, Illinois,
Massachusetts, Michigan, Ohio and Pennsylvania, comprising a total
of approximately 688,000 square feet (including expected square
footage under development or redevelopment). Assuming full
reimbursement of funding for development and qualifying
improvements under the leases, IIP’s total investment in properties
leased to PharmaCann is expected to be approximately $306.2
million. PharmaCann is IIP’s largest tenant partner in terms of
capital investment (including commitments to fund future qualifying
improvements and development) and annualized base rents.
As the 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 back their real estate assets, in addition to
offering other creative real estate-based capital solutions.
PharmaCann and LivWell Enlightened Health, another tenant
partner of IIP and one of the longest tenured cannabis operators in
the industry, announced the completion of their merger in late
February of this year. Together, the combined company’s operational
footprint consists of more than 50 dispensaries and ten cannabis
production facilities across eight states.
According to BDS Analytics, regulated cannabis sales in New York
are expected to ramp from a projected $200 million in 2022 to $2.7
billion by 2026, a significant driver of overall U.S. regulated
cannabis markets growth in coming years. PharmaCann is one of ten
vertically-integrated medical cannabis license holders, each of
which is permitted to operate up to eight dispensaries, in addition
to its cultivation and processing facility. The Marijuana
Regulation and Taxation Act was signed into law on March 31, 2021,
legalizing adult-use cannabis, with first sales of adult-use
cannabis sales in New York potentially later this year.
As of April 28, 2022, IIP owned 109 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 8.1 million
rentable square feet (including approximately 2.4 million rentable
square feet under development / redevelopment). As of April 28,
2022, IIP had committed approximately $2.2 billion across its
portfolio, including capital invested to date (excluding
transaction costs) and additional capital commitments to fund
future construction and improvements at IIP’s properties. These
statistics do not include an $18.5 million loan from IIP to a
developer for construction of a regulated cannabis cultivation and
processing facility in California and up to $55.0 million that may
be funded between June 15, 2022 and July 31, 2022 pursuant to IIP’s
lease with a tenant at one of IIP’s Pennsylvania properties, as the
tenant at that property may not elect to have IIP disburse those
funds and pay IIP the corresponding base rent on those funds.
About Innovative Industrial Properties
Innovative Industrial Properties, Inc. is a self-advised
Maryland corporation focused on the acquisition, ownership and
management of specialized 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, commencing with 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 believes 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 facts, including, without
limitation, statements regarding the lease amendment of the New
York property, PharmaCann and the New York regulated cannabis
market, are forward-looking statements. When used in this press
release, words such as IIP “expects,” “intends,” “plans,”
“estimates,” “anticipates,” “believes” or “should” or the negative
thereof or similar terminology are generally intended to identify
forward-looking statements. Such forward-looking statements are
subject to risks and uncertainties that could cause actual results
to differ materially from those expressed in, or implied by, such
statements. Investors should not place undue reliance upon
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.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220428006184/en/
Catherine Hastings Chief Financial Officer Innovative Industrial
Properties, Inc. (858) 997-3332
Innovative Industrial Pr... (NYSE:IIPR)
과거 데이터 주식 차트
부터 6월(6) 2024 으로 7월(7) 2024
Innovative Industrial Pr... (NYSE:IIPR)
과거 데이터 주식 차트
부터 7월(7) 2023 으로 7월(7) 2024