Innovative Industrial Properties Buys California Properties, Signs Lease With Vertical
Innovative Industrial Properties, Inc (NYSE: IIPR), said Thursday it closed the acquisition of the final parcel of a four-property portfolio in California that consists of around 79,000 square feet of industrial space.
Excluding transaction costs, Innovative Industrial Properties paid $17.3 million for the purchase, the company said.
At the same time, the company has signed a long-term, triple-net lease at each property with a subsidiary of Medical Investor Holdings LLC, which is doing business as Vertical.
Vertical is a cannabis company licensed for cultivation, extraction, production and distribution with a comprehensive portfolio of cannabis products.
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“We are thrilled to add Vertical and its strong management team to our tenant roster,” Paul Smithers, the president and CEO of IIP, said in a statement.
“With its breadth of cannabis brands and highly experienced team, Vertical is well-positioned to capitalize on the tremendous growth of the California regulated cannabis industry in the many years to come, and we look forward to continuing to support Vertical and its long-term growth initiatives.”
Smoke Wallin, the vice chairman and CEO of Vertical Wellness, said he believes the company's brands will become preferred products with a broad spectrum of retail customers and target consumers.
"We look forward to exploring additional ways to partner with IIP as a real estate capital partner as our company continues scale our operations."
The stock was trading up 1.24% at $92 in Thursday's premarket session.
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