Innovative Industrial Properties Inc (NYSE:IIPR) took over a Madison Heights, Michigan based property for $6.2 million.
Will use the real-estate for dispensing and cultivation
Following the takeover of this property, Innovative Industrial signed a triple net and long term lease agreement with Holistic Industries Inc’s subsidiary. The property will be used for legalized cannabis cultivation, dispensing, and processing facility by Holistic subsidiary on developing 63,000 Sq. Ft. for the building.
Invests a total of $25 million
Innovative Industrial will reimburse up to $18.8 million to Holistic for the development efforts. Therefore, the total investment of Innovative Industrial on this property amounts to $25 million.
Apart from this property, the Innovative industrial also owns and leases the other three properties based in Pennsylvania, Massachusetts, and Maryland to Holistic. Innovative Industrial serves a real estate investment trust (REIT) for the cannabis industry for medical use. The company associates with only experienced cannabis operators for medicinal use. It acquires the properties and leases them back to the companies and serves as a real estate capital solution. CEO of Innovative Industrial, Paul Smithers, said the company is pleased to support Holistic since 2017. It provided the key capital for the growth of Holistic for their expansion needs.
He further said the Holistic team, along with Josh, put in great efforts in establishing quality patient care, high product quality, and excellent customer experience. Innovative Industrial is excited to support Holistic because of all these commendable business activities.
Holistic is a vertically integrated and largest private company operating in the cannabis industries spanning multistate. It maintains cannabis operations in Pennsylvania, Michigan, Maryland, California, Massachusetts, and Washington, D.C. The approach to shop and invest in the cannabis space and scalable and unique mission helped the company achieve success.
CEO of Holistic, Josh Genderson, stated Innovative Industrial is the best partner to do business in the real estate. He deeply appreciates the support offered by it in its expansion efforts in the last three years. The company is pleased to work with Innovative Industrial in developing the property and maintain its vision for the communities. It will also strive to create a customer-centric experience for its patients and clients. Residents will benefit from jobs created by it.