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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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  "notes": "Includes a satellite image of the property and specific financial terms of the lease agreement.",
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      "text": "Core Issue: Bizarre lease terms and potential for defaulting.",
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      "text": "Address: We identify the address to be 465 Hopping Brook Road.",
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      "text": "Discount Treatment: Under the good case scenario, we believe the previous purchase price of $7.59M better reflects the value of the property at the time of IIPR purchase, this would represent a 75% discount to 2020 revenue. Under the bad case, we discount 2020 rent by 100% due to PharmaCann's dire financial position.",
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      "text": "Initial Terms: The initial term of the lease is 15.25 years, with two options to extend the term for two additional five-year periods. The lease provides for an initial annualized aggregate base rent of $2,682,500, payable monthly, which is equal to 14.5% of the sum of the purchase price of the property and the Construction Funding, subject to an initial six-month base rent abatement. The aggregate base rent is subject to 3.25% annual increases during the term of the lease, and the PharmaCann subsidiary is also responsible for paying the Company a property management fee equal to 1.5% of the then-current base rent.",
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      "text": "Transaction details: IIPR acquired a property in Holliston MA, comprising of 26,000 sq. ft. of industrial space and 32,000 sq. ft. of greenhouse facility for on 05/31/2018 for $3M, and offers reimbursement up to $15.5M.",
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      "text": "Independent due diligence: Deed records indicate that IIPR purchased the property from Jon Mark Priscoli of New Hopping Brook Realty Trust for $3M on 05/31/2018.",
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