Innovative Industrial Properties Inc (NYSE: IIPR) announced Friday that it acquired a property in Michigan and entered into a long-term lease agreement with Emerald Growth Partners.
What Happened
The property in Harrison, Michigan comprises around 45,000 square feet of industrial space.
The value of the acquisition amounted to around $6.9 million excluding transaction costs, IIP said.
At the same time, Innovative Industrial Properties said it entered into a long-term triple-net lease agreement with an affilitate of Emerald Growth Partners, which itends to operate a medical cannabis cultivation and facility there.
Innovative Industrial Properties said it will reimburse Emerald Growth Partners for tenant improvements for the building in the amount of up to $3.1 million.
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Why It's Important
At the beginning of April, Emerald Growth Partners was pre-qualified to enter the Michigan cannabis market and received licenses for cultivation, processing and retail operations.
The company received four class C cultivation licenses, one class A cultivation license and one processing facility license, as well as approval to open 12 retail locations across the state.
Michigan is one of the largest medical cannabis markets in the U.S., and last year the state legalized adult-use cannabis.
The legal cannabis market in Michigan is projected to reach $1.4 billion by 2022, according to ArcView Market Research.
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