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  "documentTitle": "Innovative Industrial Properties, Inc. (IIPR)",
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  "authorName": "Grizzly Research",
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  "sourceTypeLabel": "Short seller",
  "presentationDate": "2020-04-09 00:00:00",
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  "notes": "Includes a table of property records and a narrative argument questioning the valuation of the asset.",
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      "text": "We fail to see how this is reasonable.",
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      "text": "valuation: $20.7M",
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      "text": "Assuming each property is of generally the same size, this would imply that Cresco would pay around $115,000 per month for its current lease in 2017 and 2018. Assuming an annual 15% yield (comparable to what IIPR is charging) on its investment, this would imply a valuation of $9.2M for the facility. This is at a 50% discount to what IIPR is paying. We fail to see how this is reasonable. (Please see next property for a more accurate depiction of the overall overpayment)",
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      "text": "Deed records indicate that the property was purchased by IIPR from Joliet Production LLC for $20.7M on 10/22/2019. Previously Joliet Production LLC purchased the property from Annette M. Bates for $1.75M on 04/08/2015.",
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      "text": "The Joliet lease commenced in December 2015, the Lincoln lease commenced in February 2016, and the Kankakee lease commenced in April 2016. The terms of these lease agreements are fifteen years from the commencement date. Rent expense for these facilities was approximately $1,047,000 and $1,047,000 for the three months ended September 30, 2018 and 2017, respectively, and $3,140,000 and $3,133,000 for the nine months ended September 30, 2018 and 2017.",
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      "text": "According to the a PR statement, Joliet Production LLC is a subsidiary of Cresco. County documents showed that shortly after the purchasing of the property, Joliet Production LLC filed a mortgage document on 11/09/2015 for $5.5M. About a year later on 03/18/2016 and 05/04/2016, two mechanic's liens were filed for $106,000.",
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      "text": "Our investigator visited the property in March 2020 and confirmed that there was a production facility.",
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      "text": "A Mechanic's lien is a legal document that reserves the right for the filer to seek unpaid compensation. Typically mechanic liens arise when one party feels they've been treated unfairly. In this case, either Cresco is not honoring payments to its contractors or Cresco feels like they've been overcharged for the construction of the property, which would either imply Cresco having a history of not honoring payments or that construction was not worth $5.5M, which make us question how the $20M IIPR paid are justifiable.",
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