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Innovative Industrial Properties, a publicly traded company, is transitioning into long-term leases with its latest acquisition. The company, which focuses on sale-leasbacks for medical-use cannabis companies, has acquired a four-property portfolio in Southern California for $17.8 million and has single a long-term triple-net lease at each property with Medical Investor Holdings LLC, which operates under the name Vertical.

“We chose to enter into long-term leases for a number of reasons.  From the tenant’s perspective, these facilities are mission-critical for their businesses, and they prefer to maintain long-term control over these facilities,” Catherine Hastings, CFO, chief accounting officers and treasurer at Innovative Industrial Properties, tells GlobeSt.com. “With our long-term, triple-net lease structure and tenant options to extend the term of the lease, we provide that assurance to these tenants. From our perspective, we structure our leases on a long-term basis with the goal to provide predictable, long-term cash flows for our investors, and reduce our exposure to re-leasing costs.”

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Kelsi Maree Borland

Kelsi Maree Borland is a freelance journalist and magazine writer based in Los Angeles, California. For more than 5 years, she has extensively reported on the commercial real estate industry, covering major deals across all commercial asset classes, investment strategy and capital markets trends, market commentary, economic trends and new technologies disrupting and revolutionizing the industry. Her work appears daily on GlobeSt.com and regularly in Real Estate Forum Magazine. As a magazine writer, she covers lifestyle and travel trends. Her work has appeared in Angeleno, Los Angeles Magazine, Travel and Leisure and more.

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