Marijuana REIT announces $200 million private placement

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Innovative Industrial Properties, a marijuana real estate investment trust (REIT), said it plans to raise $200 million through a private placement of senior notes for continued cannabis-related property investments.

The San Diego-based company said the placement, under its IIP Operating Partnership, will grant initial purchasers of the notes a 30-day option to buy an additional $30 million of debt.

The notes, due in 2026, will be fully guaranteed by the company and the operating partnership’s subsidiaries, and they will rank equally with existing senior debt, according to a news release.

Innovative Industrial Properties engages in sale-leaseback deals with the marijuana industry’s leading operators. Its current portfolio includes cannabis properties in 18 states, according to the company’s website.