Innovative Industrial Properties has announced that it closed on the acquisitions of two properties in Joliet and Kankakee, Ill., which comprise approximately 90,000 square feet of industrial space in the aggregate.
The purchase prices for the properties were $32.8 million in total (excluding transaction costs). Concurrent with the closing of the purchases, IIP entered into a long-term, triple-net lease agreement for each property with a wholly owned subsidiary of Cresco Labs Inc., which intends to continue to operate the properties as regulated cannabis cultivation and processing facilities. "Cresco is expected to complete additional tenant improvements for the properties, for which IIP has agreed to provide reimbursement of up to approximately $13.8 million. Assuming full reimbursement for the tenant improvements, IIP’s total investment in the two properties will be approximately $46.6 million," the team with the company explains.
“We are very pleased to introduce Cresco to our premier tenant roster,” said Paul Smithers, president and chief executive officer of Innovative Industrial Properties, Inc. “Cresco has created a 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.”
“We look forward to beginning our long-term real estate partnership with IIP, and working closely with them to address our future real estate capital needs as we continue to execute on our strategic initiatives,” said Joe Caltabiano, president and co-founder of Cresco. “With the continued expansion of Illinois’ medical-use cannabis program and the introduction of the regulated adult-use cannabis program next year, we are very well-positioned, with state-of-the-art cultivation and processing facilities and support from IIP to continue to enhance productive capacity of these facilities, to play a key role in the continued strong growth of the Illinois regulated cannabis industry.”