Secured by an industrial and modernized
greenhouse property in the Hudson Valley, the acquisition loan will
be utilized to help expand an existing market-leading New York operation.
NEW
YORK, May 1, 2024 /PRNewswire/ -- Rainbow Realty
Group IV, LLC ("Rainbow"), in collaboration with Rainbow Realty
Group II, LLC, GEMA CP Fund I LLC, and MJ Real Estate Investment
Trust, announced the closing of a senior mortgage secured by a
highly advanced cannabis cultivation property in Hudson Valley,
New York (the "Property").
The 70-acre Property has been operated by the
purchaser—Rainbow's borrower—for over a year. The borrower has
already upgraded the facility, and proceeds from the loan will be
used to continue modernization. The borrower currently manages 8
licenses at the Property and has already produced some of the
highest-quality cannabis in the state.
The Property includes 200,000 SF of gutter-connected modern
greenhouse, 100,000 SF of heated hoop houses, and 70,000 SF of
supporting warehouse structures. The facility boasts efficiencies
that allow the borrower to grow cost-effective cannabis, including
a centralized and automated watering system that can pump over 200
gallons per minute, a 10mm BTU biomass heating system, 5
independent energy sources, and 7 on-site wells.
Kyle Shenfeld, CEO of Rainbow,
remarked: "We are excited to close this real estate-backed mortgage
transaction in the Hudson Valley. The property has a strong
alternate use case, and the borrower is well-positioned to
succeed. We are strategically investing on the cultivation
side in New York, though the
struggles of New York's dispensary
roll out are largely behind us."
About Rainbow Realty Group
Rainbow Realty Group and its affiliates have deployed
$144 million in licensed retail and
industrial properties in the United
States. Rainbow offers sale-leaseback and mortgage financing
with an existing portfolio of 58 properties across 10 states.
Rainbow's parent co, Gould Investors L.P., has successfully
invested in the real estate industry for 63 years. Gould is a
significant shareholder of NYSE:BRT and NYSE:OLP. For additional
information, please visit: https://rainbowrg.com/.
About GEMA Capital Partners
GEMA Capital Partners launched its first cannabis real estate
capital fund in 2024. GEMA is focused on helping cannabis operators
unlock capital from their real estate and additional collateral.
GEMA's principals have over twenty years of experience developing
real estate, which positions the firm as a great partner for
licensed operators looking to expand their United States footprint through mortgages,
construction loans, and sale-leasebacks.
About MJ REIT
MJ REIT is a hybrid real estate investment trust that seeks to
provide investors with stability and above-market returns derived
mainly through monthly income. The Fund has a thematic emphasis on
state-legal cannabis markets, focusing on industrial and retail
commercial real estate. For more information, please visit
https://mj-reit.com/.
Press contacts:
Jack Levy
jack@rainbowrg.com
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SOURCE Rainbow Realty Group, LLC