Innovative Industrial Properties (IIP) said it closed on the purchase of a property in Southern California and sealed a long-term lease with marijuana company Gold Flora in a sale-leaseback deal valued at $60 million.

The 201,000-square-foot industrial property is located in Desert Hot Springs.

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According to a news release, San Diego-based IIP paid $51 million for the parcel, excluding transaction costs.

Gold Flora, a vertically integrated operator based in Costa Mesa, California, is using the property as a cultivation and processing facility.

IIP said Gold Flora is expected to perform additional tenant improvements on the property.

The real estate investment trust (REIT) agreed to reimburse Gold Flora for up to $9 million.

Assuming full reimbursement for the improvements, the REIT’s total investment is expected to be $60 million.

As of Oct. 18, 2021, IIP owned 76 properties in multiple states nationwide, representing about 7.5 million rentable square feet.

Innovative Industrial Properties trades on the New York Stock Exchange as IIPR.