Sale/Leaseback Opportunities

Innovative Industrial Properties acquires freestanding industrial and retail properties from state-licensed medical-use cannabis operators. The properties are then leased back under long-term, absolute net lease agreements. We focus on well-capitalized companies that have successfully gone through the rigorous state licensing process and have been granted a license in the state where the property is located.

We act as a source of capital to these state-licensed operators by acquiring and leasing back their real estate. This allows for the opportunity to redeploy the proceeds into core operations, yielding a higher return than they would otherwise get from owning real estate.

We work with licensed operators across all product types: cultivation, processing, distribution and retail.

Our sample sale leaseback terms:
  • Targeted deal size - $5 million to $30+ million
  • Additional expansion capital available
  • Lease term – 10 to 20 years
  • Initial base rent – 10% to 16% on total investment (based on property underwriting)
  • Annual base rent escalations – 3% to 4.5%
  • Security deposit and corporate guaranty based on credit underwriting
  • Transaction timeline – closing 30 to 60 days from signed purchase and sale agreement

If you would like to discuss our program, please contact Ben Regin - Vice President of Investments: acquisitions@iipreit.com
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