Innovative Industrial Properties (IIP) closed on its acquisition of a property in Illinois, valued at $50.25 million, and entered into a long-term lease with a subsidiary of 4Front Ventures to run the business.
According to a news release, the San Diego-based real estate investment trust (REIT) bought the property for $6.5 million and plans to build about 250,000 square feet of industrial space at the property.
IIP agreed to reimburse the construction costs up to $43.75 million, and assuming full reimbursement, the company’s total investment in the property is expected to be $50.25 million.
Arizona-based multistate marijuana operator 4Front is planning to operate a licensed cannabis cultivation and processing facility on the property.
IIP also completed sale-leaseback deals with 4Front for cannabis cultivation and production facilities in Massachusetts and Washington state.
Including the Illinois deal, IIP’s total investment in properties leased to 4Front is expected to total $83.25 million and 431,000 square feet.