Cresco Labs Taps REIT for $16 Million Michigan Cannabis Cultivation and Processing Facility Development

Cresco Labs  has completed the agreement to sell its Marshall, MI property to Innovative Industrial Properties, Inc. (“IIP”). The previously announced sale was for a consideration of approximately $16 million, which includes $11 million in funding for tenant improvements. The property represents approximately 115,000 square feet of industrial space in aggregate. This sale marks Cresco’s fifth completed sale-and-leaseback transaction, the fourth with IIP, which has unlocked a total of nearly $123 million in the last seven months.

We are pleased to announce the successful completion of yet another sale-and-leaseback transaction. This is directly aligned with our stated strategy of unlocking valuable capital and building a stronger foundation to support revenue growth, expand our retail presence across Michigan and enhance shareholder value.

IIP has been our long-term capital partner across multiple states, and we are pleased to team up with them once again.

Concurrent with the closing of the sale, Cresco Labs will enter into a long-term, triple-net lease agreement with IIP and will continue to operate the property as a licensed cannabis cultivation and processing facility upon completion of redevelopment.