Cresco Labs Closes Sale-and-Leaseback for Massachusetts Facility and Expands Real Estate Partnership with Innovative Industrial Properties

Cresco Labs (CSE:CL) (OTCQX:CRLBF) is one of the largest vertically integrated multistate cannabis operators in the United States. The company announces that it has closed the agreement to its sell and lease back its Fall River, MA property to Innovative Industrial Properties, Inc. Consideration for the sale was approximately $29 million, which includes $21 million in funding for tenant improvements. The property represents approximately 118,000 square feet of industrial space in aggregate and includes cultivation space, a processing facility, and dispensary serving both Adult Use and Medical patients in Fall River, MA.

Cresco Labs is one of the largest vertically-integrated multi-state cannabis operators in the United States. Cresco is built to become the most important company in the cannabis industry by combining the most strategic geographic footprint with one of the leading distribution platforms in North America. Employing a consumer-packaged goods approach to cannabis, Cresco’s house of brands is designed to meet the needs of all consumer segments and includes some of the most recognized and trusted national brands including Cresco, Remedi and Mindy’s, a line of edibles created by James Beard Award-winning chef Mindy Segal. Sunnyside*, Cresco’s national dispensary brand, is a wellness-focused retailer designed to build trust, education and convenience for both existing and new cannabis consumers. Recognizing that the cannabis industry is poised to become one of the leading job creators in the country, Cresco has launched the industry’s first national comprehensive Social Equity and Educational Development (SEED) initiative designed to ensure that all members of society have the skills, knowledge and opportunity to work in and own businesses in the cannabis industry.

Earlier in the month, Cresco also entered into amendments to its leases with IIP for its Michigan and its Ohio properties, making available an additional $17.0 million in funding for additional improvements of their cannabis cultivation and processing facilities at the properties.

Cresco Labs CEO and Co-founder Charlie Bachtell said, “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 three exciting markets: Massachusetts, Michigan, and Ohio.”

Concurrent with the closing of the sale, Cresco Labs will enter into a long-term, triple-net lease agreement with IIP and will continue to operate the property as a licensed cannabis cultivation, processing and dispensing facility upon completion of redevelopment.