Innovative Industrial Properties, through its subsidiary IIP Life Science Investments II LLC, has entered into an agreement to provide up to $245 million in mezzanine financing to IQHQ-Alewife Holdings, LLC. This financing is part of a larger $267 million increase to an existing mezzanine loan for the Alewife Park life science campus in Cambridge, Massachusetts, bringing the total loan facility to $400 million.
Key Details
- Financing Agreement: On September 28, 2026, IIPR's subsidiary committed to provide up to $245 million under a new Mezzanine Promissory Note B. The total loan facility was increased by $267 million to a new maximum of $400 million.
- Initial Funding & Use of Proceeds: An initial advance of approximately $111 million was funded to repay the borrower's existing $85 million bridge loan. Remaining funds are available for tenant improvements, landlord work, and campus amenities related to leases by Lila Sciences, Inc.
- Property: The loan supports the continued development of Alewife Park, a 27-acre life science campus in West Cambridge, Massachusetts.
- Loan Terms: The loan's maturity date was extended to February 9, 2028. The interest rate is the greater of 14% per annum or the one-month Term SOFR plus a 9.0% spread.
- Right of First Offer: IIPR's subsidiary gained a right of first offer to purchase, finance, or refinance the Alewife Park Property, which becomes effective once its total funded amount exceeds $155 million.