San Diego, Calif.-based Innovative Industrial Properties Inc. continues its investment in the Michigan cannabis industry with the $4.8 million acquisition of property in Lansing that comprises approximately 145,000 square feet of industrial space.
This announcement comes just three weeks after IIP announced a deal to lease 45,000 square feet of industrial space in Harrison, about 30 miles north of Mount Pleasant, to Detroit-based Pleasantrees, an upcoming retail medical marijuana outlet of Emerald Growth Partners.
At the Lansing location, IIP has entered into a long-term, triple-net lease agreement with a subsidiary of Massachusetts-based Ascend Wellness Holdings (AWH), which intends to operate the property as a licensed medical-use cannabis cultivation and processing facility upon completion of redevelopment.
AWH is expected to complete tenant improvements for the building, for which IIP has agreed to provide reimbursement of up to $15 million. Assuming full reimbursement for the tenant improvements, IIP’s total investment in the property will be approximately $19.8 million.
“AWH is very well-positioned, with a strong management team and balance sheet, as it ramps up its operations in Massachusetts, Illinois, Michigan, and Ohio, each of which presents a tremendous market opportunity,” says Paul Smithers, president and CEO of IIP. “We look forward to supporting their continued growth and success for many years to come.”