San Diego-based real estate investment trust, Innovative Industrial Properties, entered into a long-term lease with a subsidiary of 4Front Ventures to run the business and closed on its acquisition of a property in Illinois. Innovative Industrial Properties bought the property for $6.5 million and plans to build about 250,000 square feet of industrial space at the property. The company agreed to reimburse the construction costs up to $43.75 million and assuming full reimbursement, the company’s total investment in the property is expected to be $50.25 million.
Arizona-based multi-state marijuana operator 4Front is planning to operate a licensed cannabis cultivation and processing facility on the property. Innovative Industrial Properties also completed sale-leaseback deals with 4Front for cannabis cultivation and production facilities in Massachusetts and Washington state.
Including the Illinois deal, Innovative Industrial Properties’s total investment in properties leased to 4Front is expected to total 431,000 square feet and $83.25 million.