Innovative Industrial Properties Acquires Massachusetts Property and Enters Into Long-Term Lease with Temescal Wellness

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 in North Adams, Massachusetts, comprising approximately 70,000 square feet of industrial space.

The purchase price for the property was $3.1 million (excluding transaction costs). Concurrent with the closing of the purchase, IIP entered into a long-term, triple-net lease at the property with Temescal Wellness of Massachusetts, LLC (Temescal) for use as a regulated cannabis cultivation and processing facility upon completion of redevelopment. Temescal is expected to complete additional tenant improvements for the property, for which IIP has agreed to provide reimbursement of up to $15.0 million. Assuming full reimbursement for the tenant improvements, IIP’s total investment in the property is expected to be $18.1 million.

As the pioneering real estate investment trust (REIT) for the regulated cannabis industry, IIP partners with experienced, licensed 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 following Temescal’s evolution and continued success in Massachusetts for some time, and are thrilled to begin this new long-term real estate partnership with Ted Rebholz and his team,” said Paul Smithers, President and Chief Executive Officer of IIP. “The Temescal team’s focus and proven success in delivering consistent, high quality cannabis products to their patients and customers over the years, in combination with their well-located dispensaries accessible to a large percentage of Massachusetts residents, have positioned them very well for the future. We look forward to supporting their real estate capital needs for many years to come, including the buildout of this new facility that is expected to dramatically enhance Temescal’s production capacity as demand for high quality cannabis products continues for patients and customers throughout the Commonwealth.”