Innovative Industrial Properties closed on the acquisition of a property in Missouri and entered into a long-term lease with CPC of Missouri – Smithville, a subsidiary of Calyx Peak.
The purchase price for the property was $1.53 million (excluding transaction costs). CPC is expected to construct approximately 83,000 square feet of industrial space at the property, for which IIP has agreed to provide reimbursement of up to $26.72 million.
"We are excited to announce this new long-term real estate partnership with Calyx, expanding our footprint into Missouri as our 19th state," said Paul Smithers, President and Chief Executive Officer of IIP. "Calyx has developed a strong reputation for quality, award-winning cannabis products in California, and we look forward to working closely with the Calyx team in coming months on the development of this new state-of-the-art facility in Missouri, as Calyx expands its operational platform to meet the tremendous growth in demand from patients throughout the state."
With over six million residents, Missouri first launched medical cannabis sales in October of last year, and regulated medical-use sales have grown rapidly since then, with total sales in August 2021 alone of approximately $22 million, according to the Missouri Department of Health and Senior Services. As of August 31, 2021, there were over 177,000 patient applications and 5,800 caregiver applications in the state. Missouri’s regulations provide for numerous qualifying medical conditions for treatment with cannabis, including, among others, cancer, epilepsy, PTSD, HIV/AIDS, terminal illness, Alzheimer’s, and any chronic medical condition normally treated with prescription medication that can lead to dependence. In addition, petitions for Missouri voters to approve the adoption of an adult-use cannabis program are targeting the November 2022 ballot.
For more information:
Innovative Industrial Properties
11440 West Bernardo Court, STE 220
San Diego, CA 92127
858-997-3332
ir@iipreit.com