Company: IIPR
Filing Date: 2025-02-26
Form Type: 424B5
Source: 0001104659-25-017454
Chunk: 156

Company: INNOVATIVE INDUSTRIAL PROPERTIES INC
Filing Date: 2025-02-26
Form: 424B5
Chunk 156
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 of securities registered under the Exchange Act within a specified 
 time period or (ii) sold as part of a class of securities registered under Section 12(b) or 12(g) of the Exchange                      
 Act;                                                                                                                                   |

| · | part of a class of securities that                                                     
 is owned by 100 or more persons who are independent of the issuer and one another; and |

| · | “freely transferable.” |

Whether a security is “freely transferable”
depends upon the particular facts and circumstances. The Plan Assets Regulation provides several examples of restrictions on transferability
that, absent unusual circumstances, will not prevent the rights of ownership in question from being considered “freely transferable”
if the minimum investment is $10,000 or less. Where the minimum investment in a public offering of securities is $10,000 or less, the
presence of the following restrictions on transfer will not ordinarily affect a determination that such securities are “freely
transferable”:

| · | any restriction on, or prohibition                                                                                                   
 against, any transfer or assignment that would either result in a termination or reclassification of the entity for federal or state 
 tax purposes or that would violate any state or federal statute, regulation, court order, judicial decree or rule of law;            |

| · | any requirement that not less than                                                                                                   
 a minimum number of shares or units of such security be transferred or assigned by any investor, provided that such requirement does 
 not prevent transfer of all of the then remaining shares or units held by an investor;                                               |

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| · | any prohibition against transfer                                                                         
 or assignment of such security or rights in respect thereof to an ineligible or unsuitable investor; and |

| · | any requirement that reasonable                                                      
 transfer or administrative fees be paid in connection with a transfer or assignment. |

Our structure has been established with the intent
to satisfy the criteria to be a “publicly-offered security”, however, there is no assurance that our securities will meet
such requirement.

Exception for Insignificant Participation by Plan Investors. The Plan Assets Regulation provides that the assets of
an entity will not be deemed to be the assets of a Plan investing in such entity if equity participation in the entity by employee benefit
plans, including Plans, is not significant. The Plan Assets Regulation provides that equity participation in an entity by Plan investors
is “significant” if at any time 25% or more of the value of any class of equity interest is held by