{"url_path":"/sec/iipr-pa/8-k/2026-05-19/item-2-03","section_key":"item-2-03","section_title":"Item 2.03 Creation of a Direct Financial Obligation or an Obligation","topic":"sec","document":{"doc_type":"8-K","doc_date":"2026-05-19","source_url":"https://www.sec.gov/Archives/edgar/data/1677576/0001104659-26-063383-index.html","accession_number":"0001104659-26-063383","cik":"0001677576","ticker":"IIPR","issuer_name":"INNOVATIVE INDUSTRIAL PROPERTIES INC","edgar_url":"https://www.sec.gov/Archives/edgar/data/1677576/0001104659-26-063383-index.html","primary_entity_key":"0001677576","primary_entity_name":"INNOVATIVE INDUSTRIAL PROPERTIES INC"},"word_count":597,"has_tables":true,"body_markdown":"**Item 2.03 Creation of a Direct Financial Obligation or an Obligation\nunder an Off-Balance Sheet Arrangement of a Registrant.**\n\n \n\nOn May 18, 2026, each of IIP-MA 7 LLC\nand IIP-PA 6 LLC, each a Delaware limited liability company (each, a “Borrower” and collectively, the\n“Borrowers”) and an indirect subsidiary of Innovative Industrial Properties, Inc. (the “Company”),\nentered into separate loan agreements with Amalgamated Bank, a bank organized under the laws of the State of New York (the\n“Lender”), consisting of (i) that certain loan agreement between IIP-MA 7 LLC and the Lender (the “MA Loan\nAgreement”) and (ii)  that certain loan agreement between IIP-PA 6 LLC and the Lender (the “PA Loan\nAgreement” and, together with the MA Loan Agreement the “Loan Agreements”), providing for an aggregate of\n$22,900,000 in secured term loans.\n\n \n\nPursuant to the MA Loan Agreement, the Lender\nmade a $10,500,000 secured term loan to IIP-MA 7 LLC (the “MA Loan”), as evidenced by a promissory note issued by IIP-MA 7\nLLC in favor of the Lender (the “MA Note”). Pursuant to the PA Loan Agreement, the Lender made a $12,400,000 secured term\nloan to IIP-PA 6 LLC (the “PA Loan”), as evidenced by a promissory note issued by IIP-PA 6 LLC in favor of the Lender (the\n“PA Note” and, together with the MA Note, the “Notes”). The MA Loan and the PA Loan are collectively referred\nto herein as the “Loans.”\n\n \n\nBoth Loans bear interest at a fixed rate of 6.67%\nper annum, calculated on the basis of a 360-day year, and provides for monthly debt service payments of principal and interest based on\na 25-year amortization schedule commencing on July 5, 2026. The Loans mature on June 5, 2031.\n\n \n\nThe Loans are secured by first priority liens\non the applicable properties owned by the each Borrower, consisting of (i) a Mortgage (With Power of Sale), Assignment of Leases\nand Rents, Security Agreement and Fixture Filing executed and delivered by IIP-MA 7 LLC (the “MA Mortgage”) and (ii) an\nOpen-End Mortgage, Assignment of Leases and Rents, Security Agreement and Fixture Filing executed and delivered by IIP-PA 6 LLC (the “PA\nMortgage” and, together with the MA Mortgage, the “Mortgages”).\n\n \n\nIn connection with the Loans, the Company entered\ninto unsecured guaranty agreements for the benefit of the Lender (collectively, the “Guaranties”), pursuant to which the Company\nguaranteed each Borrower’s obligations under its respective Loan.\n\n \n\n \n\n \n\nEach Loan Agreement contains customary representations,\nwarranties, covenants, events of default and security arrangements. Each Borrower is also subject to restrictions on incurring additional\nindebtedness, restrictions on transfers, and restrictions on distributions during the continuance of an event of default. Each Loan Agreement\nprovides for customary events of default, including, among others, failure to pay principal or interest, breach of representations and\nwarranties, violation of covenants, bankruptcy or insolvency events, and entry of monetary judgments in excess of $25,000.\n\n \n\nEach Loan is subject to a prepayment premium declining\nfrom 5% during the first year following closing to 1% during the fifth year, with no prepayment premium payable during the last 90 days\nprior to the applicable maturity date. Each Loan may be voluntarily prepaid in whole or in part upon at least 30 days’ prior written\nnotice, subject to payment of the applicable prepayment premium and satisfaction of other conditions.\n\n \n\nThe foregoing description is a summary of certain\nterms of the Loan Agreements, the Notes, the Mortgages and the Guaranties and is qualified in its entirety by reference to the full text\nof such documents, which are filed as Exhibits 10.1 through 10.6 hereto and incorporated herein by reference."}