Innovative Industrial Properties Closes Acquisition of Missouri Property And Enters Into Long-Term Lease With Smithville, LLC
Innovative Industrial Properties, Inc. (NYSE: IIPR) has expanded its portfolio of properties to a total number of 75. It now holds around 7.0 million square feet of space across 19 states of the U.S. The new property acquired has attracted an investment of $1.53 million, excluding the transaction costs. It will be developed with the association of Smithville, LLC, a subsidiary of Calyx Peak Inc.
About Innovative Industrial Properties
Innovative Industrial Properties, also known as IIP, is a real estate investment trust that is based in Maryland. IIP has a model of functioning as a self-advised corporation. Its objectives are to acquire, own, and manage the properties. The properties acquired by the corporation are leased back to the state-licensed operators who have relevant experience.
Most of the properties that have been leased to experienced operators work as regulated cannabis facilities. IIP falls under taxation as a real estate investment trust itself. It accepted the taxable category from the year that commenced on the ending of December 31, 2017.
IIP is the owner of 75 properties in California, Arizona, Florida, Colorado, Maryland, Illinois, Michigan, Massachusetts, Missouri, Minnesota, New Jersey, Nevada, Dakota, New York, Pennsylvania, Ohio, Virginia, Texas, and Washington.
IIP announced that it has acquired a property and established its entry in the 19th state of the US namely Missouri. The newly acquired property would be developed with the long-term partnership of Smithville. IIP focuses on the regulated U.S. cannabis industry and the acquisition takes this forward in a professional spirit.
The new Missouri property has been acquired at a market value of $1.53 million. The price does not include transaction cost. Smithville, now its long-term partner, plans to construct an industrial space on the property. The space would be spread over a dimension of 83,000 square feet.
All the development expenses incurred by Smithville would be reimbursed by IIP. The reimbursement amount has been estimated to reach $26.72 million. This would take the total value of the property to $28.25 million, excluding transaction cost.
Smithville has an intention to develop the property as a licensed cultivation and processing facility for cannabis.
Paul Smithers, the President and CEO of IIP, shared his excitement about the new project by issuing a formal statement. He said that the company was looking forward to stepping into the 19th state of the US.
He also praised Calyx for having a brand image that was associated with good quality and award-winning products in California. Calyx, since its inception, has set an aim of expansion to ensure that the growing demand for cannabis products can be met. The demands are related to the medical uses of the patient or for consumption by eligible adults.
The official statement was well-received and responded to by Erin Carachilo, the CEO of Calyx and Lee Hoffman of CPC. They said in a joint statement that they were thrilled to get into a long-term partnership with IIP. They also said that they were looking forward to the partnership as it would enable them to deliver premium and diversified products to the customers at a larger scale.
Calyx has witnessed a huge jump in its success in the past 12 months. The long-term partnership with IIP has made its stand in the market stronger.
Calyx was founded in 2016. It is operated centrally from its headquarters which is located in Massachusetts. Since its founding date, the company has gained its operations across 235,000 square feet of area. The area is utilized as the cultivation facility of cannabis products in California.
The company has set an aim to be achieved by the end of 2021. Calyx is aiming to open a dispensary in the West Plaza neighborhood of Kansas City, Missouri.
Missouri has proved to be a huge market for regulated cannabis products. It has over 6 million residents and the sale of regulated medical sale of cannabis has only seen an increasing trend in the graph since the market was first established in October 2020. The total sale of the cannabis products registered in Missouri stood at $22 million as of August 2021.