Innovative Industrial Properties (IIP) recently announced results for its third quarter Properties Report, which declared several tenants in default for nonpayment of rent. IIP is pursuing legal rights, which may include evictions. Tenants include two brands doing business in Illinois: PharmaCann and 4Front Ventures.

According to the press release, IIP, through indirect, wholly owned subsidiaries serving as landlords, previously entered into leases with 4Front and its tenants for four properties that IIP owns. In March 2025, the Company launched a strategic initiative aimed at improving long-term financial performance by replacing certain underperforming tenants with more financially stable, long-term operators.

IIP commenced litigation against PharmaCann for its lease defaults and continues to actively seek possession of the properties located in New York, Illinois, Pennsylvania, and Ohio. The Illinois facility is in Dwight, and according to Crain’s reporting, IIP notified Illinois that it expected the closure to be completed by the end of 2025. The closure of the Dwight facility, effective January 13, 2026, would lay off more than 80 employees. The Illinois Department of Agriculture has not received any requests for a sale or transfer.

IIP has already taken back one of the PharmaCann retail properties in Colorado in September, and PharmaCann continues to pay full rent under the remaining four retail leases in Colorado. As previously disclosed, the Company has re-leased one property located in Warren, Michigan to Berry Green and, in August, the lease for the cultivation property in Massachusetts with PharmaCann was terminated, and the Company took back possession of the property. The Company is actively working to recover amounts due from these tenants and to re-lease vacated properties.

IIP is a self-advised Maryland corporation focused on the acquisition, ownership, and management of specialized industrial properties leased to experienced, state-licensed operators for their regulated cannabis facilities. For more Illinois cannabis industry news, subscribe to Illinois News Joint’s newsletter here.

For Illinois News Joint reviews, visit here.

To find cannabis-friendly events in Illinois, visit here.