Innovative Industrial Properties Inc (NYSE:IIPR) closed on a sale-leaseback deal worth $10.5 million with
a subsidiary firm of GR Companies Inc. for a property based in Litchfield. This
property comprises around 70,000 square feet of an industrial area.

Triple-net lease deal

Concurrent with the
agreement closure, Innovative Industrial finalized a triple-net lease deal for
the property with Grassroots. The company would continue to run the property as
registered cannabis grows and processing center. Grassroots is also anticipated
to work on additional tenant developments for the property. This includes a
planned expansion, for which the company will give reimbursement of up to
around $17.7 million. Assuming full reimbursement, the company’s total
investment in the leased property will be around $28.2 million.

Mitchell Kahn, the
Founder and CEO of Grassroots expressed that associating with a proven real
estate capital firm, was a logical choice for them. This helps them to free
their funds to be redeployed into their operations. Innovative Industrial team
has been acting quickly to address Grassroots real estate capital requirements
with a perfect solution for them. With the expansion of production capacity,
Grassroots can address the demand of customers and patients of Illinois. Kahn
leads an extremely proficient management team with an exceptional track record
of establishing and running highly successful firms in a broad range of
markets, including finance, real estate, merchandising consumer products, and
cannabis.

As a leading real
estate investment trust for the medical-use cannabis market, Innovative
Industrial partners with proficient medical-use cannabis firms and provides
funds by acquiring and leasing back operators’ real estate assets.

Grassroots is one of
the top cannabis operators, with its businesses in Illinois, Pennsylvania,
North Dakota, Maryland, Ohio, Michigan, Nevada, Vermont, Connecticut, Arkansas,
and Oklahoma.

Paul Smithers, the
CEO and President of Innovative Industrial, expressed that they are thrilled to
finalize this real estate deal with Grassroots. With their reputation for top-quality
products and using their team’s deep expertise, Grassroots has become one of
the top firms in the regulated cannabis market.