Innovative Industrial Properties, Inc. announced that it closed on the acquisition of a property in Ohio, which comprises approximately 50,000 square feet of industrial space in the aggregate.
The purchase price for the property was approximately $10.6 million in total (excluding transaction costs). Concurrent with the closing of the purchase, IIP entered into a long-term, triple-net lease agreement for the property with a wholly owned subsidiary of Cresco Labs Inc. (Cresco), which intends to continue to operate the property as a regulated cannabis cultivation and processing facility. Cresco is expected to complete additional tenant improvements for the property, for which IIP has agreed to provide reimbursement of up to approximately $1.9 million. Assuming full reimbursement for the tenant improvements, IIP's total investment in the property will be approximately $12.5 million. This sale-leaseback transaction mark IIP's third acquisition and lease with Cresco, with prior IIP acquisitions and leases for two of Cresco's licensed cannabis cultivation and processing facilities in Illinois.