Innovative Industrial Properties continues to gobble up cannabis properties, with the San Diego-based real estate investment trust (REIT) closing a potentially $25 million deal to acquire and lease back a marijuana facility in Michigan.
The acquisition of the 63,000-square-foot building in the Detroit suburb of Madison Heights from Holistic Industries includes:
- A $6.2 million purchase price.
- An investment of up to $18.8 million toward developing the cultivation, processing and dispensary facility.
- A long-term lease agreement with a subsidiary of Holistic Industries, a private, vertically integrated multistate operator.
In addition to the Michigan property, Innovative Industrial Properties (IIP) already owns and leases to Holistic three other properties in Maryland, Massachusetts and Pennsylvania, according to a news release.
With this deal, IIP has spent more than $100 million since April to acquire marijuana facilities around the U.S. in sale-leaseback deals.
Such arrangements provide marijuana companies with cash at a time when more traditional sources of funding remain relatively tight.
As of Sept. 1, IIP said it owned 62 properties in 16 states across the country, totaling approximately 4.7 million square feet of rentable space.