Innovative Industrial Properties Acquires Pennsylvania Property and Enters Into Long-Term Lease with Green Thumb Industries (GTI)
IIP Expands Portfolio to Over 2.9 Million Square Feet in 13 States
SAN DIEGO, November 12, 2019–(BUSINESS WIRE)–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 a sale-leaseback transaction with Green Thumb Industries Inc. (GTI) (CSE: GTII; OTCQX: GTBIF) for its licensed cannabis cultivation and processing facility in Danville, Pennsylvania.
The purchase price for the property was $20.3 million (excluding transaction costs). GTI is also expected to make certain improvements to the property that will significantly enhance production capacity, for which IIP has agreed to provide reimbursement of up to $19.3 million. Assuming full reimbursement for such improvements, IIP’s total investment in the property will be $39.6 million.
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.
GTI is a leading national cannabis consumer packaged goods company and owner of Rise™ and Essence retail stores. GTI has 13 manufacturing facilities, licenses for 96 retail locations and operations across twelve U.S. markets.
Medical-use cannabis dispensaries in Pennsylvania made their first sales in 2018, and as of August 2019, over 180,000 patients had been registered for the state’s medical cannabis program. Similar to other medical-use cannabis states, the DOH has expanded patient access to the program over time, including approving anxiety disorders and Tourette syndrome over the summer to the program’s list of medical conditions that qualify for treatment with medical cannabis. GTI announced the opening of its seventh Rise™ store in Pennsylvania in September, and currently has locations opened for patients in Carlisle, Erie, Latrobe, Mechanicsburg, Steelton and York.
“GTI has distinguished itself as one of the preeminent cannabis operators in the United States, and we are thrilled to be a trusted real estate partner for their continued expansion in Pennsylvania to meet the tremendous patient demand there,” said Paul Smithers, President and Chief Executive Officer of IIP. “With GTI’s breadth and depth of cannabis product offerings and dedication to patient experience and right to well-being, we believe GTI will continue to