IIP inks deal with Columbia Care to acquire properties in New Jersey

Innovative Industrial Properties Inc. (IIP), a real estate investment trust that targets medical-use cannabis properties for acquisition, has reportedly inked a sale-and-leaseback deal with Columbia Care Inc. Apparently, the deal includes around 50,000 sq. ft. industrial building property and a 4,000 sq. ft. retail location.
Sources cite that IIP has acquired the two properties for USD 12.4 million. The company has agreed to reimburse USD 1.6 million for completing property improvements, a main component of their agreements with several cannabis firms. Considering full reimbursement for improvements, the company’s total investment in the two properties will reach around USD 14 million.
Speaking on the acquisition, Paul Smithers, CEO and President of Innovative Industrial Partner said that Columbia Care is one of the leading cannabis operators in the nation and the company is thrilled to collaborate with them as a new tenant partner.
He added that Columbia Care is committed to offering the top quality services to customers and patients and the company is looking forward to supporting them as long-term real estate capital in New Jersey, including offering the added real estate capital for future enhancements to their processing and cultivation facility.
Nicholas Vita, CEO at Columbia Care stated that collaborating with IIP offers the company the access to nondilutive funds that provide flexibility and also offer them the ability to continue to develop and expand the company’s manufacturing, cultivation, and retail capabilities in the important markets.
As per a press release, IIP owns 61 properties in 16 states- Pennsylvania, Virginia, North Dakota, Ohio, New York, Nevada, Minnesota, New Jersey, Massachusetts, Michigan, Illinois, Maryland, Colorado, Florida, Arizona, and California. These sites span a combined 4.5 million sq. ft.
To date, IIP has spent USD 820 million on numerous properties and has agreed to fund USD 213 million in tenant improvements. The company works with several renewed cannabis firms, including Vireo Health, Green Thumb, and many others.
 
Source Credit - https://www.businesswire.com/news/home/20200720005094/en/Innovative-Industrial-Properties-Acquires-Properties-New-Jersey