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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.”

Kelsi Maree Borland

Kelsi Maree Borland is a freelance writer and editor living in Los Angeles whose work has appeared in such publications as Travel + Leisure, Angeleno and Los Angeles Magazine.

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