Innovative Industrial Properties, Inc. (NYSE:IIPR) Files An 8-K Entry into a Material Definitive Agreement
Item 1.01. Entry into a Material Definitive Agreement.
On March 3, 2020, IIP-MD 1 LLC, a wholly owned subsidiary of IIP Operating Partnership, LP, the operating partnership subsidiary of Innovative Industrial Properties, Inc. (the “Company”), entered into an amendment (the “Lease Amendment”) to its lease with Holistic Industries LLC (“Tenant”) for the property located at 9220 Alaking Court, Capitol Heights, Maryland (the “Property”).
The Lease Amendment provides for reimbursement to Tenant of up to $5.5 million for completion of certain tenant improvements at the Property (the “TI Allowance”). If the Company funds the full amount of the TI Allowance, the Company’s total investment in the Property is expected to be $22.4 million. The provision of the TI Allowance also resulted in a corresponding adjustment of base rent under the Lease Amendment.
In addition, the Lease Amendment extended the initial term of the Lease to February 28, 2035, and eliminated Tenant’s option to purchase the Property at the end of the initial term of the Lease.
Concurrently with the execution of the Lease Amendment, a guaranty of the Lease was executed by Holistic Industries, Inc., and a limited guaranty of the Lease previously executed by Richard Cohen was terminated.
The foregoing description of the Lease Amendment does not purport to be complete and is qualified in its entirety by reference to the complete text of the Lease Amendment, which is filed as an exhibit to this report and incorporated herein by reference.
Item 9.01. Financial Statements and Exhibits.
| (d) | Exhibits. |
| Exhibit | Description of Exhibit | |
| 10.1 | Second Amendment dated March 3, 2020 to Lease Agreement dated May 26, 2017 between IIP-MD 1 LLC and Holistic Industries LLC. | |
INNOVATIVE INDUSTRIAL PROPERTIES INC Exhibit
EX-10.1 2 tm2011547d1_ex10-1.htm EXHIBIT 10.1 Exhibit 10.1 SECOND AMENDMENT TO LEASE AGREEMENT THIS SECOND AMENDMENT TO LEASE AGREEMENT (this “Amendment”) is entered into as of the 3rd day of March,…
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About Innovative Industrial Properties, Inc. (NYSE:IIPR)
Innovative Industrial Properties, Inc. is focused on the acquisition, ownership and management of specialized industrial properties leased to state-licensed operators for their regulated medical-use cannabis facilities. The Company intends to acquire its properties through sale-leaseback transactions and third-party purchases. It is focused on leasing its properties on a triple-net lease basis, where the tenant is responsible for all aspects of and costs related to the property and its operation during the lease term, including maintenance, taxes and insurance. The Company intends to conduct business in an umbrella partnership real estate investment trust (UPREIT), structure through its operating partnership. The Company’s real estate investments will consist of primarily properties suitable for cultivation and production of medical-use cannabis.
