Innovative Industrial Properties closed on the acquisition of a property located at 9410 Davis Highway in Windsor, Michigan.
The purchase price for the property was approximately $15.6 million. IIP entered into a long-term, triple-net lease agreement with Green Peak Industries (also known as Skymint Brands or Skymint), which intends to operate the property as a regulated cannabis cultivation, processing and distribution facility, upon completion of the redevelopment of the approximately 175,000 square foot industrial building. In connection with the redevelopment of the property, IIP has agreed to provide reimbursement of up to approximately $14.4 million. Assuming full reimbursement for the redevelopment of the property, IIP’s total investment in the property will be $30.0 million.
In addition to this property, IIP owns and leases to Skymint seven other properties in Michigan, including a cultivation and processing facility and six retail locations, representing approximately 262,000 square feet in the aggregate and a total investment of approximately $57.6 million (including the commitment to reimburse Skymint for redevelopment of this property).
“We have been Skymint’s long-term real estate partner since 2018, and are excited to partner with them again on the redevelopment of this new property that is expected to dramatically expand Skymint’s cannabis production capacity to meet the tremendous demand across the state, and support Skymint’s continued dispensary expansion plans,” said Paul Smithers, President and Chief Executive Officer of IIP.
Skymint’s management team is led by Jeff Radway, co-founder and CEO, with Skymint’s operations employing over 400 people. As one of the largest vertically integrated regulated cannabis operators in Michigan, Skymint operates two indoor cultivation facilities totaling approximately 74,000 square feet of production space, a 200-acre outdoor cultivation area, two processing facilities and twelve dispensaries, with plans to open more than a dozen additional dispensaries over the next year.
“We are very happy to team again with IIP on this new property, and appreciate all of their support in facilitating our expansion over the past three years,” said Jeff Radway, Co-Founder and CEO of Skymint. “IIP has been an instrumental real estate capital partner, effectively addressing our expansion needs on our timeframes, and we look forward to working closely with IIP on the redevelopment of this property, creating a state-of-the-art facility that produces the high quality, consistent products our patients and customers have come to expect from us, with an operation that provides good jobs, opportunities for career advancement for local residents and financial support to our community.”
For more information:
Innovative Industrial Properties
11440 West Bernardo Court, STE 220
San Diego, CA 92127
858-997-3332
[email protected]