Cresco closes $29M sale-leaseback deal on MA marijuana facility

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Cresco Labs, a multistate cannabis operator headquartered in Chicago, has entered into its fifth sale-leaseback deal with San Diego-based Innovative Industrial Properties (IIP), this time for a vertically integrated marijuana facility in Massachusetts.

According to a news release, the deal is worth $29 million and includes $21 million for tenant improvements.

“IIP has proven to be a reliable partner, and we are thrilled to work with them for a fifth lease. This transaction, along with our expanded real estate partnership with IIP, is allowing us to continue building out Cresco’s presence” in Massachusetts, Michigan and Ohio, Cresco CEO Charlie Bachtell said in the release.

The sale-leaseback agreement follows similar deals struck between Cresco and IIP in Illinois, Michigan and Ohio, including at least two such deals in June worth $17 million.

In all, Cresco has made at least $92 million from sale-leaseback deals to date.

Much of that money has been reinvested in company operations, according to the release, and though IIP will now own the Massachusetts facility, Cresco will continue to oversee operations.

IIP, a real estate investment trust (REIT), has been on a marijuana real estate buying spree for years and has closed similar deals with many cannabis multistate operators, including Green Thumb Industries and Vireo Health.

Cresco trades on the Canadian Securities Exchange under the ticker symbol CL and on the U.S. over-the-counter markets as CRLBF.

IIP trades on the New York Stock Exchange as IIPR.