Monson Industrial Property Sells for $12.75M for Cannabis Cultivation Facility

MONSON- Innovative Industrial Properties, Inc., the provider of real estate capital solutions to the medical-use cannabis industry, has closed on the acquisition of a property located at 96 Palmer Road in Monson, Massachusetts. This site comprises approximately 55,000 square feet of industrial space positioned on approximately 5.4 acres. The purchase price for the property was $12.75 million.

Concurrent with the closing of the purchase, the company entered into a long-term, triple-net lease agreement with Holistic Industries. As part of this compliance, the property will continue to operate as a medical-use cannabis cultivation and processing facility in accordance with Massachusetts medical-use cannabis regulations. The initial term of the lease is 20 years, with three options to extend the term for three additional five-year periods. The lease provides for an initial annualized aggregate base rent of $1,912,500, which is equal to 15% of the purchase price of the property. The aggregate base rent is subject to 3.25% annual increases during the term of the lease, and Holistic is also responsible for paying the Company a property management fee equal to 1.5% of the then-current aggregate base rent. As a part of its medical cannabis license, Holistic is allowed up to three registered marijuana dispensaries, which are in varying stages of development.

“We are very pleased to close on this transaction with Holistic in Massachusetts, whose seasoned management team has operated in regulated medical-use cannabis markets for many years,” extolled Paul Smithers, President and Chief Executive Officer of Innovative Industrial Partners, Inc. “We look forward to supporting Holistic as their long-term real estate partner, as they continue to expand their operations and develop their dispensary locations to address compelling patient needs,” added Smithers.

Josh Genderson, Chief Executive Officer of Holistic, also elaborated on the collaborated achievement. “The IIP team was great to work with throughout this transaction, making the process smooth and accelerating our timeframe to close, which provides us the funds to reinvest into our program expansion in Massachusetts,” inquired Genderson. “We are singularly focused on creating the highest quality product with exacting specifications for our patients, and this facility provides us the state-of-the-art environment to do just that…we look forward to delivering that level of quality to our Massachusetts patients for many years to come,” praised Genderson.

Paul Smithers

Josh Genderson