Innovative Industrial Properties, a real estate investment trust (REIT) focused on the cannabis industry, bought a warehouse in Michigan from LivWell Holdings in a $42 million sales-leaseback deal.
San Diego-based Innovative Industrial paid $19 million to LivWell Michigan for the 156,000-square-foot warehouse in Warren, Michigan.
LivWell Michigan, whose parent is Denver-based LivWell Holdings, will pay up to $23 million in tenant improvements on the property, which will be reimbursed by Innovative Industrial, driving the final price tag up to $42 million.
The warehouse will be operated as a cannabis cultivation and processing operation when the redevelopment of the facility is completed.
This marks the first deal Innovative Industrial has completed with LivWell, according to Paul Smithers, president and CEO of the REIT.
Smithers, in a release, described the transaction as the “beginning of our long-term real estate partnership with LivWell.”
In addition to Michigan and Colorado, LivWell has operations in Oregon, Puerto Rico and Canada.
As of Oct. 9, Innovative Industrial owns 32 properties in Arizona, California, Colorado, Illinois, Maryland, Massachusetts, Michigan, Minnesota, Nevada, New York, Ohio and Pennsylvania. Together, the properties total about 2.3 million rentable square feet of space.
For more on the Michigan transaction, click here.
Innovative Industrial trades on the New York Stock Exchange as IIPR.
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