Cannabis REIT acquires Illinois properties
Innovative Industrial Properties (IIP), the first and only real estate company on the New York Stock Exchange focused on the regulated U.S. cannabis industry, has 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, 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.
IIP partners with experienced medical-use cannabis operators and serves as a source of capital by acquiring and leasing back their real estate assets, in addition to offering other creative real estate-based capital solutions.
