SAN DIEGO–(BUSINESS WIRE)–
Innovative Industrial Properties, Inc. (IIP), the first and only real estate company on the New York Stock Exchange (IIPR) focused on the regulated U.S. cannabis industry, announced today that it entered into an amendment of the lease with a subsidiary of Ascend Wellness Holdings, LLC (AWH) at the property located in Barry, Illinois, making available an additional $8 million in funding for expansion of AWH’s regulated cannabis cultivation and processing facilities at the property. The lease amendment also adjusted the base rent under the lease to take into account the additional available funding and extended the term of the lease agreement. Assuming full payment of the additional funding, IIP’s total investment in the property will be $33 million.
IIP originally acquired the Illinois property and entered into a long-term lease with AWH in December 2018. With this additional funding, AWH expects to implement systems at the property to significantly increase production, with exacting environmental and other controls for the highest product quality and consistency. In addition to the Illinois property, IIP acquired and executed a lease with AWH for its regulated cannabis cultivation and processing facilities in Michigan, with the Michigan transaction closing in July.
As the pioneering real estate investment trust (REIT) for the medical-use cannabis industry, IIP partners with experienced medical-use cannabis operators and serves as a source of capital by acquiring and leasing back their real estate assets, in addition to offering other creative real estate-based capital solutions.
In August, with overwhelming bipartisan support, Illinois’ Compassionate Use of Medical Cannabis Program Act became a permanent program and the “pilot” designation was removed. Also in August, several medical conditions were added to the program’s list of qualifying conditions for medical cannabis treatment, including chronic pain, osteoarthritis, migraines and neuropathy, among others, and nurse practitioners and physician’s assistants were authorized