Innovative Industrial Properties Acquires Michigan Property and Expands Real Estate Partnership with Green Peak Industries (Skymint Brands)
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 closed on the acquisition of a property located at 9410 Davis Highway in Windsor, Michigan.
The purchase price for the property was approximately $15.6 million (excluding transaction costs). Concurrent with the closing of the purchase, IIP entered into a long-term, triple-net lease agreement with Green Peak Industries LLC (also known as Skymint Brands or Skymint), which intends to operate the property as a regulated cannabis cultivation, processing and distribution facility, upon completion of redevelopment of the approximately 175,000 square foot industrial building. In connection with the redevelopment of the property, IIP has agreed to provide reimbursement of up to approximately $14.4 million. Assuming full reimbursement for the redevelopment of the property, IIP’s total investment in the property will be $30.0 million.
In addition to this property, IIP owns and leases to Skymint seven other properties in Michigan, including a cultivation and processing facility and six retail locations, representing approximately 262,000 square feet in the aggregate and a total investment of approximately $57.6 million (including the commitment to reimburse Skymint for redevelopment of this property).
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 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,” said Paul Smithers, President and Chief Executive Officer of IIP.
Skymint’s seasoned management team is led by Jeff Radway, co-founder and CEO, with Skymint’s operations employing over 400 people. As one of the largest vertically integrated regulated cannabis operators in Michigan, Skymint operates two indoor cultivation facilities totaling approximately 74,000 square feet of production space, a 200-acre outdoor cultivation area, two processing facilities and twelve dispensaries, with plans to open more than a dozen additional dispensaries over the next year.