DIMONDALE—The San Diego real estate firm Innovative Industrial Properties Inc. (NYSE: IIPR), which focuses on the regulated cannabis industry, announced that it entered into an amendment of the lease with Green Peak Industries LLC at 10070 Harvest Park in Dimondale, making available an additional $18 million in funding for expansion of its cannabis cultivation and processing at the property.
The lease amendment also adjusted the base rent under the lease to take into account the additional available funding and extended the term of the lease agreement. Assuming full payment of the additional funding, IIP’s total investment in the property will be $31 million.
IIP originally acquired the Michigan property and entered into a long-term lease with Green Peak in August 2018. The 56,000-square-foot industrial building was completed earlier this year. With this additional funding, Green Peak Innovations expects to develop an additional 55,000 square feet of industrial space to augment its operations.
Green Peak is the largest vertically integrated medical-use cannabis license holder in Michigan, which is one of the largest medical-use cannabis markets in the country. Earlier this year, GPI raised more than $30 million in additional capital to continue its expansion in Michigan, and earlier this month announced the signing of an agreement to acquire one of only 22 vertical licenses in Florida. Last month, GPI opened its first of an anticipated 30 medical cannabis provisioning centers in Michigan.
IIP President and CEO Paul Smithers called GPI “one of the premier medical-use cannabis operators in the state of Michigan,” and said the deal was “another example of our position as a long-term real estate capital partner that our tenant operators can count on. The GPI team is executing well on all fronts, and has gained a tremendous reputation for its high quality medical cannabis products.”
Added Jeff Radway, GPI CEO: “IIP acted quickly to effectively finance our key growth initiatives, providing us with the capital we need to further enhance our operations and meet the tremendous demand from patients throughout the state. We look forward to working with them as we take our industry-leading operating model across the country.”