IIPR Commits $245M Mezzanine Loan for Cambridge Life Science Campus
IIPR sits 19% above its 52-week low of $44.58 on elevated volume (3.1× avg).
Summary
IIPR is deploying $245M into a mezzanine loan for IQHQ's Alewife Park life science campus in Cambridge, MA. The loan was upsized to a $400M maximum, with IIPR's Note B at $245M and the existing lender's Note C at $22M; maturity extended to February 2028. The loan carries a 15.8% yield with a 14% floor, and $111M was funded at closing to repay an $85M bridge loan. The remaining $134M is expected to be drawn through Q4 2027. This is a significant capital commitment for a REIT with a $1.45B market cap, and it diversifies IIPR's portfolio beyond cannabis into life sciences. The high yield and equity pledges provide downside protection, but the borrower's 78% lease-up and $800M prior investment suggest a stabilized asset. The deal follows IIPR's recent capital raises and tenant defaults, so this deployment signals confidence in the life science sector. Watch for the optional purchase of the other mezzanine lender's notes, which could increase the investment by up to $155M.
Updated with an SEC 8-K filing · What changed
Updates
· SEC 8-K — The loan was upsized to a $400M maximum, with IIPR's Note B at $245M and the existing lender's Note C at $22M; maturity extended to February 2028.
At the time of this announcement, IIPR was trading at $52.90 on NYSE in the Real Estate & Construction sector, with a market capitalization of approximately $1.5B. The 52-week trading range was $44.58 to $65.38. This news item was assessed with positive market sentiment and an importance score of 7 out of 10. Source: BusinessWire.