Hundreds of industries and businesses, both large and small, have suffered severely from the coronavirus health crisis. However, in the cannabis industry, it is business as usual, according to the stakeholders. Acquisition deals and collaborations are still being carried, and the latest is between Innovative Industrial Properties Inc. (NYSE:IIPR) and Massachusetts Property.
The real estate company closed the deal $7.8 million with ease, perhaps because of its focus on transforming the regulated U.S. cannabis industry. Alongside the purchase of the property, IIP also inked a long-term deal with Chicago’s Cresco Labs to expand its sale-and-leaseback agreement.
This will be the fifth acquisition, and lease IIP is securing with Cresco and the leases for the other three markets in Illinois, Michigan, and Ohio and Massachusetts.
Cresco’s House of Brands Is Designed to Meet a Wide Range of Consumer Needs
Massachusetts is home to about 6.9 million residents and has legalized cannabis for medical use. Besides, the adult-use cannabis program launched in 2018 by the Commonwealth has been exceeding its retail cannabis sales annually. In 2019, the sales from the program exceeded $587 million, and estimations, according to BDS Analytics, are that they will reach $1.35 billion by 2024.
The cooperation of the industry players, including Cresco, keeps the industry soaring. The company, vertically-integrated in the United States, is committed to quality, customer experience, and patient care.
With its 15 licensed cannabis production facilities, 15 operational cannabis dispensaries, and 29 retail cannabis licenses, Cresco has the capacity of meeting a wide range of consumer needs across the globe. Some of its recognized brands include Remedi and Mindy’s. This is in addition to a national dispensary brand, Sunnyside, a wellness-focused retailer.
IIPR’s Strategy for Expansion Is the Acquisition and Ownership of Specialized Industrial Properties
The company has pegged its expansion of acquisition of industrial properties, a strategy that is working so well. Previously, IIP closed a $17.5 million acquisition deal of property in southern California.
Statistics show that IIP has spent over $791 million in the properties and will be spending another $190.8 million on tenant reimbursements after facility improvements and construction.