Marijuana REIT investing $13 million in Michigan medical marijuana grow facility

Sophisticated Industrial Properties, a San Diego real estate investment trust (REIT) serving the medical marijuana business, is spending $13 million to acquire and rent out a property in Michigan slated to be utilised as an MMJ farming and processing facility.

Sophisticated Industrial Properties, which trades on the New York Stock Exchange as IIPR, bought the property in Dimondale, southwest of Lansing, for $5.5 million, according to a news release.

Here’s what you need to know:

  • Sophisticated Industrial Properties has agreed to reimburse the seller of the property about $5.3 million for finishing “certain development milestones. ”
  • The REIT also has agreed to reimburse Green Peak up to $2.2 million for tenant improvements to the center.
  • The first term of the lease is 15 years, with two options to extend that for 2 additional five-year periods.
  • The aggregate base rent is subject to 3.5% annual increases during the period of the lease, and Green Peak is responsible for paying Sophisticated Industrial Properties a property management fee equal to 1.5% of the then-existing aggregate base rent.

Released at Fri, 03 Aug 2018 20:22:31 +0000

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