Cresco Sells Massachusetts Property To Cannabis REIT For About $29M

Cresco Labs CL CRLBF has sold a Fall River, Massachusetts-based property to Innovative Industrial Properties Inc. IIPR for $28.8 million.

The property covers 118,000 square-feet of industrial space, including cultivation space, a processing facility, and dispensary.

The sell and lease-back deal also includes funding for tenant upgrades, which amounts to $21 million.

According to the Wednesday press release, the San Diego based cannabis REIT entered into a long-term, triple-net lease deal for the Fall River property with Cresco's subsidiary, which agreed to operate it upon finalization of reconstruction works.

"We are thrilled to partner with IIP on our fifth lease with them," stated Cresco Labs' CEO and Co-founder Charlie Bachtell. "They have been reliable partners and a consistent source of non-dilutive capital that has allowed us to expand our capacity and go deep in our strategic markets."

IIP has been partnering with Cresco for some time now. The latest sale-leaseback agreement marks IIP's fifth collaboration with the Chicago-based company.

Paul Smithers, IIP's president, and CEO, said they "are pleased to further expand our long-term real estate partnership with them in Massachusetts."

IIP's and Cresco's Collaboration, Cresco's latest moves

Last month, IIP announced it's making changes to the leases at its Michigan and Ohio properties, while securing an additional $17 million in financing.

IIP said it would use funds to improve cultivation and processing facilities in both states.

Last year, Cresco sold its Kankakee, Illinois properties to IIP for $46.3 million.

Meanwhile, Cresco has been making some shifts in its leadership team.

Last week it appointed former Motorola Exec Dennis Olis as its new CFO, and tapped National Basketball Players Association Executive Director Michele Roberts for its board of directors. Roberts recently spoke with Benzinga on the transition.

Courtesy photo