Innovative Industrial Properties Expands Real Estate Partnership at New York Property with PharmaCann
businesswire | December 14, 2020
Creative Industrial Properties, Inc. (IIP), the sole land organization on the New York Stock Exchange (NYSE: IIPR) zeroed in on the controlled U.S. cannabis industry, reported today that it went into a correction of the rent with PharmaCann Inc. (PharmaCann) in Hamptonburgh, New York, making accessible $31.0 million in subsidizing for huge improvements underway limit and extra overhauls at the 127,000 square foot office. The rent alteration likewise changed the base lease under the rent to consider the extra accessible financing and expanded the term of the rent understanding. Accepting full installment of the extra financing, IIP's absolute interest in the property will be $61.0 million. IIP initially procured the New York property and went into a drawn out rent with PharmaCann in 2016.
Notwithstanding this office in New York, IIP possesses and rents to PharmaCann controlled cannabis development and handling offices in Illinois, Massachusetts, Ohio and Pennsylvania, containing a sum of roughly 363,000 square feet. Accepting full repayment of inhabitant upgrades under the leases, IIP's absolute interest in properties rented to PharmaCann is relied upon to be $167.5 million.
As the spearheading land venture trust (REIT) for the clinical use cannabis industry, IIP accomplices with experienced clinical use cannabis administrators and fills in as a wellspring of capital by procuring and renting back their land resources, notwithstanding offering other imaginative land based capital arrangements.
PharmaCann is a main multi-state cannabis administrator with licenses in Illinois, Maryland, Massachusetts, New York, Pennsylvania and Ohio. Established in 2014 with dispensaries working under the brand Verilife, PharmaCann has brought over $200 million up in value to date, and has more than 650 representatives.
“We are thrilled to partner once again with PharmaCann in its expansion of the New York facility, the first property in our portfolio that now spans 64 properties across 16 states,” said Paul Smithers, President and Chief Executive Officer of IIP. “Since 2016, we have progressively supported PharmaCann as its go-to long-term real estate partner, and we are excited to take this next step with the PharmaCann team to significantly upgrade and enhance production capability at their New York facility, in a market experiencing tremendous and growing patient demand for high quality products.”
“IIP has been a strong, reliable, flexible real estate partner since we initially sold and leased back our New York property to them in 2016,” said Brett Novey, PharmaCann’s Chief Executive Officer. “The New York regulated cannabis market is still in its early stages, and in conjunction with IIP’s unwavering support as our primary real estate capital provider, we expect the significant enhancements to our New York facility to preserve our strategic positioning as we continue to scale our operations to meet the anticipated demand for customers throughout the state.”