SAN DIEGO – Revolutionary Industrial Properties, Inc. (IIP), the initially and only genuine estate business on the New York Stock Exchange (NYSE: IIPR) focused on the regulated U.S. cannabis business, announced these days that it closed on the final parcel of a 4-home portfolio in southern California, which comprises roughly 79,000 square feet of industrial space in total.
The acquire cost for the southern California portfolio was roughly $17.three million in the aggregate (excluding transaction charges). Concurrent with the closing of the acquire, IIP entered into a extended-term, triple-net lease at every single home with a subsidiary of Healthcare Investor Holdings LLC (d/b/a Vertical) for continued operation as licensed cannabis cultivation, extraction, manufacturing and distribution facilities in accordance with California regulations.
As the pioneering genuine estate investment trust (REIT) for the health-related-use cannabis business, IIP partners with seasoned health-related-use cannabis operators and serves as a supply of capital by acquiring and leasing back their genuine estate assets, in addition to providing other inventive genuine estate-primarily based capital options.
“We are thrilled to add Vertical and its robust management group to our tenant roster,” mentioned Paul Smithers, President and Chief Executive Officer of IIP. “With its breadth of cannabis brands and extremely seasoned group, Vertical is properly-positioned to capitalize on the tremendous development of the California regulated cannabis business in the lots of years to come, and we appear forward to continuing to assistance Vertical and its extended-term development initiatives.”
Vertical is a multi-state operator licensed for cannabis cultivation, extraction, manufacturing and distribution in California and cultivation operations in Arizona and Ohio, with an comprehensive portfolio of branded cannabis goods. Vertical’s management group has decades of knowledge in beginning, developing and operating extremely effective organizations in the alcohol, agriculture, customer solution goods, distribution, entertainment, meals healthcare and health-related industries.
“This strategic transaction with IIP enables us to unlock our capital tied to our genuine estate and redeploy these proceeds into the tremendous possibilities we see ahead in the cannabis business, in California and beyond,” mentioned Bill Sutman, CFO of Vertical.
Smoke Wallin, Vertical’s Vice Chairman and CEO of Vertical Wellness, added, “With our vertical integration in California and the strength of our brand portfolio across all type components, we think our brands will emerge as the preferred goods across a broad spectrum of retail consumers and target shoppers. We appear forward to exploring more approaches to companion with IIP as a genuine estate capital companion as our business continues scale our operations.”
As of September 12, 2019, IIP owned 30 properties positioned in Arizona, California, Colorado, Illinois, Maryland, Massachusetts, Michigan, Minnesota, New York, Nevada, Ohio and Pennsylvania, totaling roughly two.two million rentable square feet (like roughly 685,000 rentable square feet beneath improvement / redevelopment), which have been 100% leased with a weighted-typical remaining lease term of roughly 15.9 years. As of September 12, 2019, IIP had invested roughly $287.two million in the aggregate (excluding transaction charges) and had committed an more roughly $98.eight million to reimburse specific tenants and sellers for completion of building and tenant improvements at IIP’s properties. IIP’s typical existing yield on invested capital is roughly 14.five% for these 30 properties, calculated as (a) the sum of the existing base rents (right after the expiration of applicable base rent abatement or deferral periods), supplemental rent (with respect to the lease with PharmaCann LLC at 1 of IIP’s New York properties) and home management charges, divided by (b) IIP’s aggregate investment in these properties (excluding transaction charges and like aggregate prospective improvement / redevelopment funding and tenant reimbursements of roughly $98.eight million). These statistics do not involve $40. million that could be funded in the future pursuant to IIP’s lease with Trulieve Cannabis Corp. at 1 of IIP’s Massachusetts properties or the more $four. million which could be requested by PharmaCann LLC at 1 of IIP’s Pennsylvania properties, as the tenants at these properties could not elect to have us disburse these funds to them and spend us the corresponding base rent on these funds.
About Revolutionary Industrial Properties
Revolutionary Industrial Properties, Inc. is a self-advised Maryland corporation focused on the acquisition, ownership and management of specialized industrial properties leased to seasoned, state-licensed operators for their regulated health-related-use cannabis facilities. Revolutionary Industrial Properties, Inc. has elected to be taxed as a genuine estate investment trust, commencing with the year ended December 31, 2017.
Vertical is a top vertically integrated multi-state operator and brand and distribution business in the health-related and adult-use cannabis and hemp-primarily based CBD industries. With have operations in Arizona, California and Ohio which position Vertical properly to take benefit of the legalization and normalization of cannabis globally. Vertical is led by an executive group of entrepreneurs and business enterprise leaders from the alcohol beverage, agriculture, CPG, distribution, entertainment, meals, healthcare, and health-related industries.