Cresco sells Pennsylvania cannabis property for $45M in leaseback deal

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Multistate operator Cresco Labs closed on the sale of a Pennsylvania cannabis property under a $45 million sale-leaseback agreement with a Chicago-based real estate investment trust.

The sale marks Cresco’s first sale-leaseback transaction with Aventine Property Group, according to a Cresco news release.

The property, located in Brookville, includes approximately 135,000 square feet of existing cultivation, manufacturing and production capacity.

Cresco was expected to sell off up to $500 million in Columbia Care assets after it agreed to purchase the rival MSO in March in a deal initially valued at $2 billion.

Cresco did not say whether Columbia Care previously owned the Brookeville facility, but the New York-based MSO had operations there.

Under terms of the Aventine sale-leaseback transaction, a Cresco subsidiary will continue to operate the cultivation and production facility.

“This transaction further strengthens our company, unlocking valuable capital from our balance sheet,” Cresco Labs CEO and co-founder Charles Bachtell said in a statement.

“Our current capital position, combined with the expected cash proceeds from the sale of divested assets related to the pending closing of the Columbia Care acquisition, will put us in a strong position to continue to invest in the high-return opportunities available to us in both the short, medium, and long term to drive returns for shareholders.”