Innovative Industrial Properties has 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)," the team with the company explains. "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, 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.
Ohio’s licensed medical cannabis program is in its early stages, with first sales occurring at the beginning of this year. In less than one year of sales, however, there were nearly 80,000 patients and over 8,000 caregivers registered under the program as of the end of December.
For more information:
Innovative Industrial Properties
11440 West Bernardo Court, STE 220
San Diego, CA 92127
858-997-3332
[email protected]