Innovative Industrial Buys Michigan Asset, Welcomes LivWell
The company entered into a long-term, triple-net lease agreement with a licensee of LivWell Holdings that is expected to complete some $23 million in tenant improvements.
Innovative Industrial Properties Inc. has acquired a new industrial asset in Warren, Mich., growing its footprint as the demand for cannabis cultivation and processing facilities has continued to rise.
The REIT paid $19 million for the 156,000-square-foot property and concurrently entered a long-term, triple-net lease agreement with a licensee of LivWell Holdings. As stipulated in the arrangement, IIP will pay the tenant $23 million for future improvements, which will repurpose the warehouse to accommodate the firm’s needs. The agreement will bring the investment cost to a total of $42 million.
The acquisition brings IIP’s U.S. portfolio to 32 properties, which are located in 12 states and encompass a total of 2.3 million square feet. The company owns three other assets in Michigan, which are leased to Ascend Wellness, Emerald Growth Partners and Green Peak.
LivWell is a licensed cannabis operator with most of its plants located in Colorado, but also in Oregon, Puerto Rico and Canada. Last year, the company launched LivWell International, following a series of transactions closed by Alberta-based affiliate 51st Parallel.