-Innovative Industrial Properties, Inc. (IIP), the first and only real estate company on the New York Stock Exchange (NYSE: IIPR) focused on the regulated U.S. cannabis industry, announced today that it is extending its long-term real estate relationship with Kings Garden Inc. (Kings Garden), one of California’s top cannabis producers, with the acquisition of a Southern California property, which comprises approximately 192,000 square feet of industrial space.
“IIP has been a powerful partner for us, enabling us to expand operations in the largest cannabis market in the world”
The purchase price for the property was approximately $25.4 million (excluding transaction costs). Concurrent with the closing of the purchase, IIP entered into a long-term, triple-net lease at the property with Kings Garden, which intends to operate the property as a licensed cannabis cultivation and distribution facility upon completion of redevelopment. Kings Garden is expected to complete additional tenant improvements for the property, for which IIP has agreed to provide reimbursement of up to $25.0 million. Including this property, IIP leases six properties to Kings Garden, representing approximately 364,000 square feet of industrial space and a total commitment (including purchase prices and commitments to fund tenant improvements, but excluding transaction costs) of approximately $95.0 million.
“Kings Garden is one of the preeminent operators in California, and has pioneered industry best practices to develop the highest quality and consistency in its cannabis products,” said Paul Smithers, President and Chief Executive Officer of IIP. “We are thrilled to expand our long-term real estate partnership and support Kings Garden in significantly enhancing their capacity through redevelopment of this new facility to Kings Garden’s exacting environmental controls and specifications.”
As the pioneering real estate investment trust (REIT) for the medical-use cannabis industry, IIP partners with experienced medical-use cannabis operators and serves as a source of capital by acquiring and leasing back their real estate assets, in addition to offering other creative real estate-based capital solutions.
“IIP has been a powerful partner for us, enabling us to expand operations in the largest cannabis market in the world,” said Michael King, Chairman and CEO of Kings Garden. “Kings Garden prides itself on working with only the best and IIP is on a different level from all others, working collaboratively with us to facilitate a smooth transaction. Our partnership with IIP provides us with strategic, non-dilutive capital to continue to leverage our expertise as purveyors of world-class cannabis products, to further increase our reach to patients and customers throughout California. We expect this new facility to increase our production capacity by more than double, adding approximately 50,000 pounds of finished cannabis on an annual basis.”
According to BDS Analytics, through September 30, 2020, California generated over $2.6 billion in regulated cannabis sales, which is expected to grow to nearly $7.4 billion by 2025. Also according to Marijuana Business Daily, while only 168 of California’s 540 cities and counties allow for regulated cannabis companies to operate within their borders as of June, dozens of city and county initiatives were approved by voters this month, which are expected to further increase demand for regulated cannabis products throughout the state.
As of November 16, 2020, IIP owned 64 properties located in Arizona, California, Colorado, Florida, Illinois, Maryland, Massachusetts, Michigan, Minnesota, Nevada, New Jersey, New York, North Dakota, Ohio, Pennsylvania and Virginia, totaling approximately 5.2 million rentable square feet (including approximately 1.9 million rentable square feet under development/redevelopment), which were 99.3% leased (based on square footage) with a weighted-average remaining lease term of approximately 16.3 years. As of November 16, 2020, IIP had invested approximately $943.2 million in the aggregate (excluding transaction costs) and had committed an additional approximately $293.1 million to reimburse certain tenants and sellers for completion of construction and tenant improvements at IIP’s properties. These statistics do not include up to approximately $3.2 million that may be funded in the future pursuant to IIP’s lease with a tenant at one of IIP’s Massachusetts properties, as the tenant at that property may not elect to have IIP disburse those funds to the tenant and pay IIP the corresponding base rent on those funds. These statistics also treat IIP’s Los Angeles, California property as not leased, due to the tenant being in receivership and its ongoing default in its obligation to pay rent at that location.
About Innovative Industrial Properties
Innovative Industrial Properties, Inc. is a self-advised Maryland corporation focused on the acquisition, ownership and management of specialized industrial properties leased to experienced, state-licensed operators for their regulated medical-use cannabis facilities. Innovative Industrial Properties, Inc. has elected to be taxed as a real estate investment trust, commencing with the year ended December 31, 2017. Additional information is available at www.innovativeindustrialproperties.com.
About Kings Garden
Based in Coachella Valley, Kings Garden Inc. is California’s predominant cannabis cultivation, processing and manufacturing company, specializing in the world of premium grade boutique products at an unsurpassed commercial scale. Now one of the largest producers in California, Kings Garden prides itself on having organized highly experienced cannabis management and operations team, while being fully compliant and licensed across the state of California. From its inception, Kings Garden has held unwavering values focused on superior quality of end products, its team of management and employees who are considered family, giving back to local communities, and the advancement of the cannabis industry as a whole. For more information visit https://kingsgarden.com/ or https://www.instagram.com/kingsgarden.ca/.
Innovative Industrial Properties Forward-Looking Statements
This press release contains statements that IIP believes to be “forward-looking statements” within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All statements other than historical facts, including, without limitation, statements regarding the lease and redevelopment of the California property, Kings Garden and the California regulated cannabis market, are forward-looking statements. When used in this press release, words such as we “expect,” “intend,” “plan,” “estimate,” “anticipate,” “believe” or “should” or the negative thereof or similar terminology are generally intended to identify forward-looking statements. Such forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in, or implied by, such statements. Investors should not place undue reliance upon forward-looking statements. IIP disclaims any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Real estate booms in the West Kootenay – WellandTribune.ca
It’s a seller’s market out there for people thinking of buying or selling property in the West Kootenay.
Real estate agents across the region say despite the pandemic, they’re running off their feet.
“It’s been the most active past two years in the last 12 years,” says Bill Lander of Coldwell Banker in Nelson.
In Nakusp, New Denver, and the Arrow Lakes areas, realtors report sales are up about 13% over 2019. The actual number of residential sales within the Village of Nakusp is down from last year (mainly because of low inventory), but vacant land is hot, as are commercial property sales. Overall, residential home prices in Nakusp are up about 18% this year over 2019.
In Kaslo, Kul Nijjar of Fair Realty’s Kootenay BC Property Matchmakers says 47 properties have been sold to date “with a few others that sold without even being listed.” Nijjar is on track to beat last year’s sales of 49 units. The average sale price to date in Kaslo this year is up 12.2%.
The Slocan Valley has seen ‘robust’ sales the last two years, says Lander. This year, Lander made 74 sales, at an average sale price of $279,000, about 94% of asking price. Last year, he made 81 sales up the valley, at an average $306,000.
The average sale price is murkier in the Slocan Valley, where a couple of large sales in the last two years skewed the averages. But Lander says he figures prices are comparatively flat for the last two years, compared to the rest of the province.
Demand outpacing supply
Supply is an important factor in determining price. It’s been especially tight in Nakusp.
“[A] lack of inventory has turned towards a ‘seller’s-type market,’” says Kelly Roberts of Selkirk Reality. “Our office has the lowest listing inventory that I have seen in probably the past 25 years.”
She says locals buying into the tight market have kept Nakusp hot.
“I think some of this increase may be due to the COVID pandemic,” she adds. “I think the pandemic has perhaps pushed some of the fence sitters off on our side… those that were maybe wondering if they should move out of the city decided the time had come.”
With mortgage deferrals due to the pandemic scheduled to end soon, more houses may enter the market, stabilizing prices, say analysts. But other factors may mean the good times – at least for sellers – will continue.
“The hot construction market has also helped sell existing stocks,” says Coldwell Banker’s Lander. “Increased building material costs has definitely increased the value of ‘used’ housing.
“Trades workers are booked,” he says. “Development land has had a significant increase in costs as well.”
Like for most of us, it’s been a rollercoaster of a year for real estate agents. When the pandemic hit, the industry was essentially shut down. Both buyers and sellers were concerned about participating in the sales process. But as the situation stabilized, other trends that boosted local sales began to establish themselves.
“The COVID trend of being able to work remotely is also driving the market,” says Coldwell Banker’s Lander.
“I think we’re seeing that more people are able to work from home now so these people are buying in our area,” adds Selkirk Realty’s Roberts. “There are also those that are securing property in our area to eventually build and move here.”
“Once COVID hit it certainly has changed how people viewed living in rural, smaller areas in Canada. We just got busier and busier,” says Kaslo’s Nijjar. “A lot of people who are able to work remotely are attracted to our areas – having fibre available in Kaslo and area certainly helps those buyers.
“It’s also nice to see a few more families be interested in living here. More full-time residences are being purchased, whereas in the past we have seen people buy recreational/ seasonal properties.”
And as prices rise in the Okanagan and points west, the wave has moved towards the Kootenays.
“As real estate prices were going up in the busier areas like the Lower Mainland and Okanagan, that allowed those sellers to purchase properties here for little or no financing,” explains Nijjar. “For example, someone could sell their house for around a million dollars and then be able to buy larger properties or on the lake or with lake views [here] for considerably less.
“I’m seeing many buyers from Revelstoke, Rossland and Golden coming in with equity take-outs,” agrees Lander.
However, the realtors say they’re concerned about the economic impact of the second wave of COVID, and how long the hurt will go on.
“If it continues like it has been, then I foresee another busy market this spring, providing we have the inventory to sell,” says Roberts. “However, depending on what the COVID pandemic long-term effects are to our economy, things could certainly change in the next 6-12 months.”
Provincially, analysts remain bullish on BC’s real estate outlook for 2021.
“Multiple Listing Service residential sales in the province are forecast to rise 16.9% to 90,450 units this year, after recording 77,350 residential sales in 2019,” says a release from the BC Real Estate Association, adding that residential sales are forecast to increase 9.7% to 99,240 units in 2021.
“We are forecasting the provincial MLS average price to finish the year up 9.9% and to increase a further 2.6% in 2021.”
Still, 2020 is not a year realtors will soon forget.
“All I can add is that 2020 saw very strange, unprecedented market conditions in our area – something I’ve never quite seen in the 32 years I have been in this business,” says Roberts.
Okanagan-Shuswap real estate markets not slowing down – Kelowna Capital News
Home sales in the Central, North Okanagan and Shuswap markets continue to soar.
According to the Okanagan Mainline Real Estate Board (OMREB), residential sales in November of this year topped last year’s sales by 71 per cent, but came in at 15 per cent less than October’s 1,062 sales.
The supply of homes, OMREB found, still struggles to meet the high demand.
“We continue to see high residential housing demand despite a mild seasonal slowdown generally seen during this time of year,” said OMREB President Kim Heizmann said in an announcement on Dec. 2.
“Looking at the numbers we can see that consumer demand is not being met due to record low listings, which creates upward pressure on pricing. Essentially, the demand is so high that is difficult for inventory to build up.”
Compared to 2019, single-family homes across the board have increased in sales and price. In November, the most homes in the region sold in the Central Okanagan, totalling 291 sales. The highest average price also rested in the Central Okanagan, at $728,900, up 10. 5 per cent from last year. The lowest prices in the region, while also climbing, are found in Shuswap/Revelstoke, at $480,600. The North Okanagan fell between the two.
It’s a similar story for townhouses, as well as condos/apartments. However, condos in Shuswap/Revelstoke are closer in price to those in the Central Okanagan, at $342,000 compared to $387,300.
The average number of days to sell single-family homes substantially decreased, by about 20 per cent across the board compared to last year.
However, compared to October, the number of days to sell all home types went up 8 per cent to 88 days.
For more information on your local real estate market, visit OMREB.com, or contact your local Realtor.
Do you have something to add to this story, or something else we should report on? Email: email@example.com
Record-Setting Sales Continue in November on Montreal's Real Estate Market – GlobeNewswire
L’ÎLE-DES-SŒURS, Quebec, Dec. 03, 2020 (GLOBE NEWSWIRE) — The Quebec Professional Association of Real Estate Brokers (QPAREB) has just released its residential real estate market statistics for the Montreal Census Metropolitan Area (CMA) for the month of November, based on the real estate brokers’ Centris provincial database.
A new November sales record was set in the Montreal CMA despite the second wave of the COVID-19 pandemic. Residential sales jumped by 32 per cent compared to November of last year.
“We also saw a historic 57 per cent increase in the number of new condominium listings on the Island of Montreal, the highest level since the year 2000 when the real estate brokers’ Centris system began compiling market data,” said Charles Brant, director of market analysis at the QPAREB.
- Year-to-date sales have increased by 7 per cent compared to the same period in 2019.
- Sales continued to increase in several periphery markets, including the North Shore (+48 per cent), the South Shore (+37 per cent), Laval (+34 per cent) and Vaudreuil-Soulanges (+32 per cent), as well as on the Island of Montreal (+21 per cent). In contrast, sales in Saint-Jean-sur-Richelieu slowed, registering a 3 per cent increase, due primarily to a record drop in new listings in this market over the past several quarters.
- By property category, plexes (2 to 5 dwellings) registered the largest sales increase (+34 per cent) followed closely by condominiums (+31 per cent) and single-family homes (+31 per cent).
- There was a significant increase in active listings for condominiums (+14 per cent) and plexes (+7 per cent), numbers that have not been seen for a month of November since 2012 and 2014, respectively. This was in contrast to single-family homes, which registered a sharp decline (-38 per cent).
- With market conditions that are still very much to the advantage of sellers, median prices continued to increase significantly for single-family homes (+23 per cent) but tended to slow down for condominiums and plexes (+9 per cent).
If you would like additional information from the Market Analysis Department, such as specific data or regional details on the real estate market, please write to us.
Book your interview for December 16!
On December 16, the QPAREB will unveil its assessment of the 2020 real estate market, along with its forecasts for 2021 and an analysis of the impact of COVID-19. A press release will be issued on November 16. Please reserve your time slot for an interview now at firstname.lastname@example.org.
About the Quebec Professional Association of Real Estate Brokers
The Quebec Professional Association of Real Estate Brokers (QPAREB) is a non-profit association that brings together more than 13,000 real estate brokers and agencies. It is responsible for promoting and defending their interests while taking into account the issues facing the profession and the various professional and regional realities of its members. The QPAREB is also an important player in many real estate dossiers, including the implementation of measures that promote homeownership. The Association reports on Quebec’s residential real estate market statistics, provides training, tools and services relating to real estate, and facilitates the collection, dissemination and exchange of information. The QPAREB is headquartered in Quebec City and has its administrative offices in Montreal. It has two subsidiaries: Centris Inc. and the Collège de l’immobilier du Québec. Follow its activities at qpareb.ca or via its social media pages: Facebook, LinkedIn, Twitter and Instagram.
Société Centris provides real estate industry stakeholders with access to real estate data and a wide range of technology tools. Centris tools are used by close to 14,000 real estate brokers, as well as other industry professionals. Centris also operates Centris.ca, the most visited real estate website in Quebec.
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A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/7999a601-9834-44d3-bb9d-6e3ec1c4df6f
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