The loan provides liquidity to IIP but at a relatively high cost, reflecting the specialized cannabis real estate sector. Monitor the Ohio property cure and New York property sale closing; any extension exercise will require meeting LTV and debt yield tests that could necessitate additional principal paydowns.
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Executive Summary
IIP subsidiaries entered into a $56.5 million loan agreement with Thorofare Asset Based Lending REIT Fund V, secured by eight cannabis industrial properties. The loan bears interest at Term SOFR + 5.00% (floor 3.75%), matures May 2029 with two 12-month extension options, and includes an origination fee of $649,750 and exit fee of 0.50%. The filing also discloses an existing adverse tenancy event at the Ohio property and a pending purchase option exercise by the New York property tenant with a change in collateralization. The high spread reflects the risk profile of cannabis real estate.
Key Financial Metrics
Key Facts
- Loan principal of $56.5 million, interest rate Term SOFR + 5.00% per annum with a 3.75% floor
- Initial maturity date May 5, 2029, with two 12-month extension options subject to LTV and debt yield tests
- Origination fee of $649,750 and exit fee of 0.50% of principal repaid
- Collateral includes 8 properties owned by special-purpose entities; IIP Operating Partnership LP is pledgor
- Adverse Tenancy Event at Ohio property (IIP-OH 2 LLC) with 180-day cure period to replace tenant or release property
- New York property tenant has exercised purchase option (closing expected May 22, 2026); lender agrees to switch collateral to a $58.5M seller financing note at 15% interest
- Interest rate cap required with strike at 6.0% for the loan term
Financial Impact
New $56.5 million debt obligation; interest cost at current SOFR (~5%) plus 5% spread = ~10% annual interest; $5.65M annual interest at par
Risk Factors
- Adverse Tenancy Event at Ohio property may trigger required principal paydown or collateral substitution within 180 days
- Interest rate cap requirement: if Term SOFR exceeds 6%, additional hedging costs may apply
- High loan-to-value for cannabis properties could limit refinancing options at maturity
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 3 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001104659-26-056353 |
| Document: tm2613694d1_ex10-3.htm | 0001104659-26-056353 |
| Document: tm2613694d1_ex10-2.htm | 0001104659-26-056353 |
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Jul 21, 2026 10w ago | 8-K | $63.26 $55.12 | ▲ +12.87% | ▲ +15.43% | $51.00 (+19.38%) |
Jun 15, 2026 15w ago | 8-K | $59.60 $63.72 | ▲ +6.91% | ▲ +6.71% | $51.00 (−14.43%) |
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Jun 9, 2026 16w ago | 8-K | $23.90 $24.47 | ▲ +2.38% | ▼ −1.50% | $51.00 (+113.39%) |
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Apr 10, 2026 25w ago | 8-K | $21.20 $24.00 | ▲ +13.21% | ▲ +5.48% | $51.00 (+140.57%) |
Mar 4, 2026 30w ago | 8-K | $54.54 $49.39 | ▼ −9.44% | ▼ −5.03% | $51.00 (−6.49%) |
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