Innovative Industrial Properties Expands Long-Term Real Estate Partnership With Goodness Growth Holdings in New York
SAN DIEGO, September 27, 2021–(BUSINESS WIRE)–Innovative Industrial Properties, Inc. (IIP), the first and only real estate company on the New York Stock Exchange (NYSE: IIPR) focused on the regulated U.S. cannabis industry, announced today that it is extending its long-term real estate relationship with Goodness Growth Holdings, Inc. (f/k/a Vireo Health International, Inc., “Goodness Growth”) (CSE: GDNS; OTCQX: GDNSF), with the acquisition of approximately 92.3 acres in New York adjacent to one of IIP’s properties leased to Goodness Growth, where IIP and Goodness Growth will partner on the development of 324,000 square feet of industrial space.
The purchase price for the land was approximately $10.23 million (excluding transaction costs). Concurrent with the closing of the land purchase, IIP amended its existing lease at the adjacent property to incorporate this new project, and Goodness Growth intends to operate the consolidated property as a licensed cannabis cultivation and processing facility upon completion of development. IIP is expected to provide reimbursement to Goodness Growth for the construction of the new building of up to approximately $46.1 million. Including this transaction, IIP leases two properties to Goodness Growth (one in New York and one in Minnesota), representing approximately 453,000 square feet of industrial and greenhouse space (including space under development) and a total commitment (including purchase prices and commitments to fund development, but excluding transaction costs) of approximately $72.8 million.
As the pioneering real estate investment trust (REIT) for the regulated cannabis industry, IIP partners with experienced, regulated 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