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  "documentTitle": "Innovative Industrial Properties, Inc. (IIPR)",
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  "authorName": "Grizzly Research",
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  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2020-04-09 00:00:00",
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      "text": "Therefore, we find it suspicious that the price has gone up significantly from $1.75M to $18M, over 10x in just one year.",
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      "text": "purchase price markup: 10x",
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      "text": "Transaction details: On 10/30/2019 IIPR closed on the purchase of a property with approximately 48,000 sq. ft. of industrial space. The purchase price was $18M, with up to $7M reimbursement for improvement.",
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      "text": "Address: We have identified the property to be located on 1200 E Mason Ave, Dwight, IL, 60420, parcel # 05-05-02-300-015",
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      "text": "Dwight IL PharmaCann Core Issue: Overpayment, potential default.",
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      "text": "Independent due diligence: This property showed significant price increases in just one year prior to the sales to IIPR. According to deed records, the property was sold for $1.75M in 08/16/2018 before selling for $18M on 10/30/2019 to IIPR.",
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      "text": "Discount Treatment: We discounted the rent by 80% to reflect the true value of current investment. We believe the original purchase price by the previous party of $930,000 is much more reflective of the underlying economics of the property.",
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      "text": "However, according to pictures from Google Maps, we see that the property is still consisting of Steel Structures similar to ones built in 2015. Therefore, we find it suspicious that the price has gone up significantly from $1.75M to $18M, over 10x in just one year. We also see that the property is sold at a significant premium compared to the county's assessment value.",
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      "text": "Initial Terms: We estimate 2020 rent for this property to be $3.68M, representing a yield of 20.44%.",
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      "kind": "table",
      "text": "Sales History table showing 2019 and 2018 transactions.",
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