Innovative Industrial Properties Strikes Deals with Columbia Care and Curaleaf in New Jersey
Innovative Industrial Properties (IIP), a real estate investment trust (REIT) focusing on the cannabis sector, has inked a pair of deals for a combined 165,000 sq. ft. of property in New Jersey.
The California-based REIT announced Monday the closing of a $14 million sale-and-leaseback agreement with Columbia Care Inc. that includes an industrial building comprising approximately 50,000 sq. ft., and a retail location spanning roughly 4,000 sq. ft.
That deal comes one week after the company closed a separate $35 million transaction with Curaleaf Holdings that includes 111,000 sq. ft. of industrial space.
In both instances, the publicly traded IIP (NYSE: IIPR) has agreed to reimburse the companies millions of dollars for completing property improvements, a key component of their sale-and-leaseback agreements with several cannabis firms.
Under the terms of the deal with Columbia Care, IIP will acquire the two properties for $12.4 million and has agreed to reimburse up to $1.6 million in property improvements.
“Partnering with IIP provides Columbia Care with access to nondilutive capital that offers flexibility and provides us with the ability to continue to build and expand our cultivation, manufacturing, and retail capabilities in the markets that matter most,” Columbia Care CEO Nicholas Vita said via a news release.
Meanwhile, IIP acquired the 111,000 sq. ft. property located in Blue Anchor, New Jersey from Curaleaf for $5.5 million. it has also agreed to reimburse up to $29.5 million for tenant improvements.
“Curaleaf is one of the preeminent multistate cannabis operators, and we are thrilled to enter into this transaction as their long-term real estate partner,” IIP president and CEO Paul Smithers said via a news release. “Curaleaf and their team have clearly demonstrated their commitment over time to delivering the highest quality cannabis products to patients and consumers, and we look forward to providing them the real estate capital to create the optimal environments as they continue to fulfill that vision.”
Earlier this month, IIP struck a $29 million deal with Chicago-based Cresco Labs for 118,000 sq. ft. of cultivation, processing and dispensary space in Fall River, Massachusetts.
Over the last eight months, IIP has agreed to spend about $121 million — including reimbursements for tenant improvements — to acquire five Cresco properties.
According to a release, IIP owns 61 properties in 16 states — Arizona, California, Colorado, Florida, Illinois, Maryland, Massachusetts, Michigan, Minnesota, New Jersey, New York, Nevada, North Dakota, Ohio, Pennsylvania and Virginia. Those locations span a combined 4.5 million sq. ft.
To date, the company has spent $820 million on the properties and has agreed to fund $213 million in tenant improvements.
IIP works with several well-known cannabis companies, including Green Thumb Industries and Vireo Health, among many others.
Additional information is included in the news releases, linked below.