Innovative Industrial Properties Inc (NYSE:IIPR) has completed the sale and leaseback of properties with the subsidiaries of GR Companies Inc for a consideration of $24.1 million. The closed sale and leaseback agreements comprise two properties in North Dakota and Pennsylvania.
Triple-net lease accords
After the purchase, Innovative Industrial signed long term and triple net lease accord with GR Companies subsidiary. The subsidiary of GR Companies will use the two properties that comprise an industrial space of 105,000 Sq. Ft. for cannabis processing and cultivation.
The GR Companies will also make tenant improvements on the properties that include the redevelopment of 35,000 Sq. Ft. property at Pennsylvania for which Innovative Industrial agreed to pay $13.2 million. As a result, the total investment of Innovative Industrial in the recently acquired two properties is $37.3 million.
The GR Companies is a leading cannabis operator having multistate operations in Nevada, North Dakota, Maryland, Pennsylvania, Illinois, Vermont, Oklahoma, Michigan, Ohio, Arkansas, Connecticut, and Vermont. CEO and founder of the GR Companies, Mitch Kahn, is highly experienced in leading the management team. He played a vital role in managing and establishing a variety of industries that include merchandising, consumer products, cannabis, finance, and real estate.
Innovative Industrial is engaged in purchase and leaseback the properties. The company partners with leading cannabis operators in the medical cannabis space. It provides capital support for experienced cannabis operators. CEO and President of Innovative Industrial, Paul Smithers, said the company is pleased to partner with GR Companies in North Dakota and Pennsylvania as a real estate capital partner. The GR Companies has a proven track record to supply the market with high-quality products. It enjoys excellent consumer and patient loyalty and brand recognition. Paul is pleased to partner again with GR Companies and helps to focus on improving their footprint in Pennsylvania and North Dakota.
Kahn said Innovative Industrial acted quickly to support its capital plan and reinforced as a long term and reliable partner for capital needs. The company sells high-quality concentrate products and flowers, meeting the needs of 100% dispensaries in Pennsylvania. It expects to improve production significantly in both states to meet the growing demand.
Innovative Industrial reported rental revenues of $11.2 million in Q3 2019. It is an increase of 201% when compared to the same period last year.