Innovative Industrial Properties Expands Real Estate Partnership with Holistic Industries in California

Innovative Industrial Properties, Inc. (IIP), the first and only real estate company on the New York Stock Exchange (NYSE: IIPR) focused on the regulated U.S. cannabis industry, announced today that it signed a long-term lease with Holistic Industries Inc. (Holistic) for its property located in Los Angeles, California.

As previously reported, Holistic entered into a definitive agreement to acquire the retail, distribution, cultivation and manufacturing licenses for cannabis operations from the tenant at IIP’s Los Angeles, California property, which was in receivership. Holistic closed on this transaction and concurrent with this closing executed a long-term, triple-net lease with IIP for the entire property. In connection with the planned redevelopment of the property, IIP has agreed to provide reimbursement to Holistic of up to $11.0 million. Assuming full reimbursement for the redevelopment of the property, IIP’s total investment in the property will be $24.0 million.

Including the California property, IIP owns and leases to Holistic regulated cannabis cultivation and processing facilities in Maryland, Massachusetts, Michigan and Pennsylvania, comprising a total of approximately 333,000 square feet. Assuming full reimbursement of tenant improvements under the leases, IIP’s total investment in properties leased to Holistic is expected to be $108.4 million.

As the pioneering real estate investment trust (REIT) for the medical-use cannabis industry, IIP partners with experienced medical-use cannabis operators and serves as a source of capital by acquiring and leasing back their real estate assets, in addition to offering other creative real estate-based capital solutions.

“We are thrilled to partner once again with Holistic at our Los Angeles property. We have a vision for this property and its potential, and we believe Josh and his team are the best operators to realize that vision, with their unwaivering dedication to customers and patients and their proven success in other states to execute successfully to fulfill that goal,” said Paul Smithers, President and Chief Executive Officer of IIP. “We look forward to supporting them through the redevelopment of this property to recognize that potential.”