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Innovative Industrial Properties provides $245M mezzanine loan for IQHQ
The loan includes funding to replace an $85M bridge loan and is set to mature in February 2028 with a one-year extension option.
Innovative Industrial Properties, a cannabis-focused REIT that expanded into life sciences last year, agreed to provide a $245M mezzanine loan to IQHQ for the first phase of its 27-acre Alewife Park laboratory campus in Cambridge, according to Bisnow.
Bisnow reports the financing is designed to pay off an existing $85M bridge loan, fund completion and lease-up, with about $111M advanced at closing and the remaining $134M paid over time through late next year.
The deal is expected to carry a 15.8% interest rate, with a February 2028 maturity date and a one-year extension option, Bisnow said. IQHQ had already invested $800M into the project prior to the REIT loan.
The first phase includes three buildings totaling 392,000 square feet and is 78% leased to Lila Therapeutics after the company signed a 235,000-square-foot lease at 1 and 5 Alewife Park, Bisnow reported. A second phase is planned for two additional sites with up to 364,000 square feet of development potential.