A Massachusetts marijuana company bought an industrial building in New Bedford along with 17 acres to develop a cannabis cultivation and production facility.

MariMed Inc. paid nearly $7 million for the property, part of an industrial park, according to a company release.

The company plans to develop approximately 70,000 square feet of the space into a pot cultivation and production facility and lease it to ARL Healthcare Inc., a nonprofit that is a registered medical marijuana dispensary in Massachusetts. Under the license, and in agreement with the city of New Bedford, the facility will be used solely to cultivate and produce cannabis medicine and related products. The products are intended to be distributed to patients licensed by the Massachusetts Department of Public Health at three ARL dispensaries in other municipalities.

New Bedford Mayor Jon Mitchell said once the facility is operational, ARL will provide substantial annual benefits to the city, including the hiring of local workers.

ARL expects to employ 50 to 100 people and start cultivation in the first quarter of 2018, according to the release, with the first products in dispensaries in second or third quarter of 2018, pending receipt of state approvals.

“As a Massachusetts-based company, we congratulate our neighbor ARL on their successful license application and are eager to help them become the best medical cannabis company in this state to provide high quality, safe cannabis medicine and treatments to licensed patients in need of consistent relief,” said Jon Levine, MariMed CFO, in the release. “This property purchase represents the continuing execution of MariMed’s strategy to acquire assets that will, in turn, increase revenue and earnings for all of our business units and generate tax revenue for the state.”