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: firstname.lastname@example.org