Innovative Industrial Properties, a San Diego real estate investment trust (REIT) serving the medical marijuana industry, is spending up to $25 million to acquire and a lease out a property in Illinois that is slated to be used as an MMJ cultivation and processing facility.
Innovative Industrial Properties, which trades on the New York Stock Exchange as IIPR, bought the 10-acre property in Barry, a small town in western Illinois, for $19 million, according to a news release.
The REIT also entered into a lease and development agreement with Boston-based Ascend Wellness Holdings, which has raised $40 million in capital from investors Poseidon Asset Management, Salveo Capital, JM10 Partners and Shire Capital Advisors.
Innovative Industrial Properties has agreed to reimburse Ascend up to $6 million for renovations of the 75,000-square-foot building.
The deal, along with Ascend’s definitive agreement to acquire HCI Alternatives, increases the vertically integrated cannabis company’s footprint in the state.
Illinois is the ninth state where Innovative Industrial Properties owns cannabis business-related real estate.