Benzinga | Jan 8, 2021 07:06AM EST

Innovative Industrial Properties Expands Real Estate Partnership with Holistic Industries in California

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 signed a long-term lease with Holistic Industries Inc. (Holistic) for its property located in Los Angeles, California.

As previously reported, Holistic entered into a definitive agreement to acquire the retail, distribution, cultivation and manufacturing licenses for cannabis operations from the tenant at IIP's Los Angeles, California property, which was in receivership. Holistic closed on this transaction and concurrent with this closing executed a long-term, triple-net lease with IIP for the entire property. In connection with the planned redevelopment of the property, IIP has agreed to provide reimbursement to Holistic of up to $11.0 million. Assuming full reimbursement for the redevelopment of the property, IIP's total investment in the property will be $24.0 million.

Including the California property, IIP owns and leases to Holistic regulated cannabis cultivation and processing facilities in Maryland, Massachusetts, Michigan and Pennsylvania, comprising a total of approximately 333,000 square feet. Assuming full reimbursement of tenant improvements under the leases, IIP's total investment in properties leased to Holistic is expected to be $108.4 million.