{"id":1004198964,"date":"2017-12-05T10:31:39","date_gmt":"2017-12-05T18:31:39","guid":{"rendered":"https:\/\/www.commercialsearch.com\/news\/?p=1004198964"},"modified":"2022-12-09T02:00:22","modified_gmt":"2022-12-09T10:00:22","slug":"innovative-industrial-to-purchase-350-ksf-medical-use-cannabis-facility","status":"publish","type":"post","link":"https:\/\/www.commercialsearch.com\/news\/innovative-industrial-to-purchase-350-ksf-medical-use-cannabis-facility\/","title":{"rendered":"Innovative Industrial to Purchase 350 KSF Medical-Use Cannabis Facility"},"content":{"rendered":"<p>By Alex Ciorogar<\/p>\n<div id=\"attachment_1004201134\" style=\"width: 310px\" class=\"wp-caption alignright\"><a href=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2017\/12\/A6A12851.jpg\" target=\"_blank\" rel=\"noopener noreferrer\"><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-1004201134\" data-attachment-id=\"1004201134\" data-permalink=\"https:\/\/www.commercialsearch.com\/news\/innovative-industrial-to-purchase-350-ksf-medical-use-cannabis-facility\/_a6a1285-2\/\" data-orig-file=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2017\/12\/A6A12851.jpg\" data-orig-size=\"800,620\" data-comments-opened=\"0\" data-image-meta=\"{&quot;aperture&quot;:&quot;11&quot;,&quot;credit&quot;:&quot;&quot;,&quot;camera&quot;:&quot;Canon EOS 5DS R&quot;,&quot;caption&quot;:&quot;&quot;,&quot;created_timestamp&quot;:&quot;1492794805&quot;,&quot;copyright&quot;:&quot;&quot;,&quot;focal_length&quot;:&quot;24&quot;,&quot;iso&quot;:&quot;100&quot;,&quot;shutter_speed&quot;:&quot;0.066666666666667&quot;,&quot;title&quot;:&quot;&quot;,&quot;orientation&quot;:&quot;1&quot;}\" data-image-title=\"\" data-image-description=\"\" data-image-caption=\"\" data-large-file=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2017\/12\/A6A12851.jpg?w=800\" class=\"wp-image-1004201134 size-medium\" src=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2017\/12\/A6A12851.jpg\" alt=\"\" width=\"300\" height=\"233\" srcset=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2017\/12\/A6A12851.jpg 800w, https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2017\/12\/A6A12851.jpg?resize=300,233 300w, https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2017\/12\/A6A12851.jpg?resize=768,595 768w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/><\/a><p id=\"caption-attachment-1004201134\" class=\"wp-caption-text\">Innovative Industrial Properties Inc.<\/p><\/div>\n<p>Innovative Industrial Properties Inc.\u2014a leading provider of creative real estate capital solutions to the medical-use cannabis industry\u2014will acquire an Arizona-area asset comprising more than 350,000 square feet of greenhouse and industrial space in a $15 million sale-leaseback transaction with a subsidiary of The Pharm LLC.<\/p>\n<p>The firm will also enter into a long-term, triple-net lease agreement with The Pharm subsidiary, which is planning certain tenant improvements, for which Innovative Industrial has agreed to provide reimbursement of up to $3 million.<\/p>\n<p><em>\u201cThe Pharm is pleased to enter into a long-term partnership with Innovative Industrial Properties through a real estate sale-leaseback transaction that will help capitalize our plans for national expansion. Innovative Industrial Properties\u2019 flexible, long-term capital solutions have enabled The Pharm to unlock the equity it had invested in real estate to be redeployed back into our core business, where we expect to generate higher returns,\u201d<\/em> said Randy Smith, founder &amp; CEO of The Pharm LLC, in prepared remarks.<\/p>\n<h2>Long-term agreement<\/h2>\n<p>The initial term of the lease is 15 years, which can be extended for two additional five-year periods. The lease provides for an initial annualized aggregate base rent of $2.5 million or 14 percent of the sum of the purchase. The tenant improvements are subject to an initial partial rent abatement. The aggregate base rent is subject to 3.2 percent annual increases during the term of the lease. The Pharm subsidiary is also responsible for paying Innovative Industrial Properties a property management fee equal to 1.5 percent of the then-existing base rent.<\/p>\n<p><em>\u201cThe Pharm\u2019s team brings together decades of management and business execution success and we believe they are very well-positioned to continue their strong growth in the Arizona medical-use cannabis market, which as of October 2017 had nearly 150,000 registered patients being treated for numerous qualifying medical conditions, including chronic pain,\u201d<\/em> said Paul Smithers, president &amp; CEO of Innovative Industrial Properties Inc., in a prepared statement.<\/p>\n<p>Earlier this year, Innovative Industrial Propertis Inc. purchased a\u00a0a 72,000-square-foot\u00a0<a href=\"https:\/\/www.commercialsearch.com\/news\/cannabis-cultivation-facility-coming-to-maryland\/\">cannabis cultivation facility<\/a> in Capitol Heights, Md.<\/p>\n<p>The deal is expected to close by the end of the year.<\/p>\n<p><em>Image courtesy of\u00a0Sunday Goods<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The firm will also enter into a long-term, triple-net lease agreement with The Pharm, which is planning certain tenant improvements.<\/p>\n","protected":false},"author":928,"featured_media":1004201134,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21784,21743,21782,21825,21748,21783,21742,15],"tags":[35350,38477],"class_list":["post-1004198964","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-brokerage","category-deals","category-development","category-finance","category-industrial","category-investment","category-latest","category-west","tag-innovative-industrial-properties-inc","tag-the-pharm-llc"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v23.4 (Yoast SEO v24.6) - 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