Rainbow Realty Group completes $20.45 million loan to Sacramento based Cannabis Real Estate Portfolio

Rhea-AI Summary

Rainbow Realty Group announced the closing of a $20.45 million loan collateralized by 9 properties in Sacramento, CA, primarily housing cannabis operators. The properties include 13 tenants, with 12 involved in cannabis operations ranging from dispensaries to manufacturers. Sacramento's legal cannabis sales reached $820.4 million in 2021, marking a 78.6% increase from the previous year. This financing will support tenant investments and improvements across the portfolio, which includes retail, industrial, and office spaces.

Positive

• Loan of $20.45 million closed to support cannabis-related properties.
• High legal cannabis sales in Sacramento, totaling $820.4 million in 2021, are promising for the real estate portfolio.

Negative

• None.

NEW YORK, Aug. 24, 2022 /PRNewswire/ -- Rainbow Realty Group, LLC ("Rainbow") and its affiliates announced closing a loan cross-collateralized by 9 properties in Sacramento, CA. At the properties there are 13 tenants, of which 12 are licensed cannabis operators. License-types include: 3 operating dispensaries, 2 dispensaries in development, 2 cultivators, 2 manufacturers, 2 delivery businesses, and a microbusiness. 

Funds from this transaction will be used for improvements at the properties as the tenants continue to invest in their operations. Per the city of Sacramento there was $820,400,000 of legal cannabis sales in 2021, an increase of 78.6% over 2020. The 5 dispensaries within the collateral represent 12.5% of the total 40 licenses awarded in Sacramento.

Kyle Shenfeld, President of Rainbow, remarked: "We are pleased to close this transaction and support the burgeoning Sacramento cannabis market. The properties within the portfolio – a blend of retail, industrial, and office – have inherent non-cannabis use cases. We have high regard for our borrower, who holds the lead market share in Sacramento."

About Rainbow Realty Group

Rainbow Realty Group and its affiliates are real estate companies focused on retail, industrial and greenhouse properties with cannabis companies in the United States. Rainbow offers sale-leaseback and mortgage financing with a portfolio consisting of 50 properties across 8 states. Rainbow's parent co, Gould Investors L.P., has been in the real estate industry for 60+ years. Gould is a significant shareholder of NYSE:BRT and NYSE:OLP. For additional information please visit: https://rainbowrg.com/.

Press contacts:

Tyler Gilliam
Tyler@rainbowrg.com

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SOURCE Rainbow Realty Group, LLC

FAQ

What is the amount of the loan closed by Rainbow Realty Group?

Rainbow Realty Group closed a loan of $20.45 million.

How many properties are collateralized in the loan transaction?

The loan is cross-collateralized by 9 properties.

What percentage of cannabis licenses in Sacramento do the collateralized dispensaries represent?

The collateralized dispensaries represent 12.5% of the total 40 licenses awarded in Sacramento.

How much did Sacramento's legal cannabis sales increase in 2021?

Sacramento's legal cannabis sales increased by 78.6% in 2021, totaling $820.4 million.

What types of cannabis operations are involved with the properties?

The properties house various cannabis operations, including dispensaries, cultivators, manufacturers, delivery businesses, and a microbusiness.