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.