The cannabis-focused real estate company Innovative Industrial Properties, Inc. IIPR said Tuesday it has completed the acquisition of two Illinois properties.
The acquired properties together account for around 90,000 square feet of industrial space and are located in Joliet and Kankakee, the company said.
Innovative Industrial Properties bought the properties for around $32.8 million in total plus transaction costs, the company said.
At the same time, Innovative Industrial Properties signed a triple-net lease agreement for each property with a subsidiary of Cresco Labs Inc. CRLBF, which plans to continue to run the properties as cannabis cultivation and processing facilities.
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Cresco is set to finish extra tenant improvement for the properties, with compensation from Innovative Industrial Properties in the amount of up to $13.8 million. With full compensation, the company’s total investment in the properties would amount to $46.6 million.
“We are very pleased to introduce Cresco to our premier tenant roster,” Paul Smithers, president and CEO of Innovative Industrial Properties, said in a statement.
“Cresco has created a tremendously valuable footprint in the cannabis industry throughout their states of operation. We look forward to our long-term real estate partnership and continuing to support them in their strategic growth for many years to come.”
Innovative Industrial Properties stock was up 0.77% at $72.99 at the time of publication, while Cresco Labs stock was down 0.49% at $6.07.
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