Cannabis REIT IIP Buys $15.6M Michigan Property From Skymint, Total Assets In State Surpass $193M
Cannabis-focused real-estate company Innovative Industrial Properties, Inc. (NYSE:IIPR) confirmed Monday it has bought a property in Windsor, Michigan for around $15.6 million. The property is located at 9410 Davis Highway.
In relation to the transaction, the company signed a long-term, triple-net lease agreement with Green Peak Industries LLC (known as Skymint Brands). Skymint plans to run the property as a cannabis cultivation, processing and distribution facility, once the improvements for the industrial building are finalized.
The building covers roughly 175,000 sq. ft. of space, and IIP approved to compensate up to around $14.4 million for its redevelopment. In case of granting the full reimbursement, the company’s total investment in the property will amount to $30 million.
The San Diego-based cannabis REIT holds and leases to Skymint seven other properties in Michigan, counting a cultivation and processing facility and six retail stores, aside from this newly acquired property.
Why It Matters
“We have been Skymint’s long-term real estate partner since 2018, and are excited to partner with them again on the redevelopment of this new property that is expected to dramatically expand Skymint’s cannabis production capacity to meet the tremendous demand across the state, and support Skymint’s continued dispensary expansion plans,” Paul Smithers, president and chief executive officer of IIP, stated.
Skymint is considered to be one of the biggest vertically-integrated cannabis operators in Michigan, running two indoor cultivation facilities with around 74 sq. ft. of production space and a 200-acre outdoor cultivation area.
“We are very happy to team again with IIP on this new property, and appreciate all of their support in facilitating our expansion over the past three years,” Jeff Radway, co-founder and CEO of Skymint, stated. “IIP has been an instrumental real estate capital partner, effectively addressing our expansion needs on our timeframes, and we look forward to working closely with IIP on the redevelopment of this property, creating a state-of-the-art facility that produces the high quality, consistent products our patients and customers have come to expect from us, with an operation that provides good jobs, opportunities for career advancement for local residents and financial support to our community.”
With this newest addition, Innovative Industrial Properties holds 69 properties across 18 states, and its total investment for the properties owned in Michigan reaches $193.3 million.To
Innovative Industrial Properties’ shares were trading 1.76% lower at $181.69 per share at the time of writing.
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