Skymint had sunk millions into the former Summit Sports and Ice Complex to turn the 200,000-square-foot facility into a huge cannabis cultivation and processing operation. As has been the case with Skymint lately, things didn't go as planned.
Had they, Skymint would have doubled its weed production capabilities.
But...Skymint never completed the build-out and ended up surrendering the facility and 21 acres near Lansing back to the developers, Innovative Industrial Properties Inc. (NYSE: IIPR), which happens to be the country's largest cannabis property developer as well as the first and only to trade on the NYSE.
What Now?
Green Peak Industries, doing business as Skymint, is now under the control of a court-ordered receiver for owing more than $130 million to investors for back rent and taxes. Innovative Industrial Properties, which owns the property and buildings at eight Skymint locations and six retail dispensaries for a total investment value of $57.6 million,
sought to legally regain possession of the Summit Sports property and two retail locations in March when Skymint entered into receivership, the company said in an earnings call last week.
Paul Smithers, president and CEO of the San Diego real estate company said the company's investment in the two retail locations was $3 million, reported Crains Detroit.
Skymint's receiver, Gene Kohut of Detroit-based Trust Street Advisors, confirmed to Crain's that the company terminated its lease and returned the property to Innovative Industrial.
Summit Sports and Ice Complex
For 22 years, the Summit Sports and Ice Complex hosted youth hockey, basketball and gymnastics. Once home to the Twistars, the gymnastics club that trained the 2012 U.S. women's Olympic team that went on the win a gold medal in London, wrote Crain's Dustin Walsh.
Why infamous? Founder and coach of the Twistars, John Geddert committed suicide in 2021 as he faced 24 charges related to the sexual predation of the imprisoned Michigan State University Dr. Larry Nassar, who preyed on hundreds of gymnasts for years with impunity.
Bad Vibes
Apparently, the sports complex never recovered from the Nassar scandal and closed in 2021. Then along came what seemed at the time like a good plan: to sell the facility to Innovative Industrial on behalf of Skymint.
"Skymint's appetite to scale up led to its financial troubles," noted Walsh.
More details here on the Skymint Summit Sports and Ice Complex collapse.