Cannabis-focused REIT Innovative Industrial Properties Inc. said it has finalized the acquisition of a Michigan property with around 115,000 square feet of industrial space.

Innovative Industrial Properties spent $5 million for the purchase and signed a triple-net lease agreement for the property with a subsidiary of Cresco Labs Inc.

Cresco plans to run the property as a cannabis cultivation and processing facility once the proposed renovations are finalized.

IIP is expected to provide additional financing of up to $11 million for needed tenant enhancements managed by Cresco. With a full reimbursement, IIP’s total investment would reach $16 million.

“Cresco has emerged as one of the best-in-class multistate cannabis operators in the United States," Paul Smithers, president and CEO of IIP, said in a statement. "We are thrilled to support their continued progress through our fourth real estate transaction with them.”

The news comes on the heels of Cresco's hiring 250 new full-time staff at its Sunnyside dispensaries in Illinois.

The company has said its focus is on "displaced hospitality and restaurant workers, the development of an essential pay program for its frontline team members, and partnerships with local restaurants to provide much-needed economic support for these local owners.”

Innovative Industrial Properties shares were trading 1.9% higher at $72.98 at the time of publication Thursday.

Cresco Labs shares were up 1.06% at $4.28. 

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