Rainbow Realty Group completes $4.50 million loan to Denver Colorado based Cannabis Real Estate Portfolio

Rhea-AI Summary

On March 30, 2023, Rainbow Realty Group and MJ Real Estate Investment Trust announced a significant loan closing of $4.50 million, secured by five properties in Colorado. The properties are operated by Silver Stem Fine Cannabis, a notable player in the cannabis sector with 10 dispensaries and two cultivation sites in Colorado. The funds aim to consolidate existing debt and facilitate future growth opportunities for Silver Stem in a competitive market. Rainbow's President expressed optimism regarding Silver Stem's continued success, highlighting its profitable operations despite industry challenges.

Positive

• Closing of $4.50 million loan indicates strong financial backing.
• Silver Stem operates 10 dispensaries and two cultivation facilities, demonstrating market presence.
• Funds will be utilized for debt consolidation and growth opportunities.

Negative

• None.

NEW YORK, March 30, 2023 /PRNewswire/ -- Rainbow Realty Group II, LLC ("Rainbow") and MJ Real Estate Investment Trust ("MJ REIT"), nationwide owners and lenders of real estate to the US cannabis industry, today announced the closing of a loan, cross-collateralized by 5 properties in Colorado. The properties are owned and operated by the principals of Silver Stem Fine Cannabis and are located in Denver, Littleton, and Sheridan.

Silver Stem has been operating in the cannabis industry for 14 years and has grown through strategic acquisition and reinvestment to encompass 10 cannabis retail dispensaries and two cultivation facilities in Colorado. The company has remained profitable by focusing on smart capital allocation and vertical integration. 

Funds from this transaction were used to consolidate debt across their real estate portfolio, close on a property, and will be used future growth opportunities within the market.

Kyle Shenfeld, President of Rainbow, remarked: "We are pleased to close this transaction and support the growth of one of the strongest operators in this industry. Being a profitable operator in a competitive market like Colorado is no easy task and we believe the best is yet to come for Silver Stem."

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/

About MJ REIT

MJ REIT is a hybrid real estate investment trust focused on acquiring, owning, leasing, and providing mortgages to properties across the United States. MJ REIT has a thematic emphasis on state-legal cannabis markets with a focus on industrial and retail commercial real estate. For more information, please visit https://mj-reit.com/

Press contacts:

Tyler Gilliam
Tyler@rainbowrg.com

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SOURCE Rainbow Realty Group, LLC; MJ Real Estate Investment Trust

FAQ

What is the significance of the $4.50 million loan by Rainbow Realty Group?

The loan is secured by five properties owned by Silver Stem Fine Cannabis and will support debt consolidation and future growth in a competitive market.

Who are the primary beneficiaries of the $4.50 million loan?

The primary beneficiaries are Silver Stem Fine Cannabis, which will use the funds for growth opportunities and debt consolidation.

When was the loan closing announcement made?

The announcement was made on March 30, 2023.

What properties are involved in the loan transaction?

The loan is cross-collateralized by five properties located in Denver, Littleton, and Sheridan, Colorado.

What is the focus of MJ Real Estate Investment Trust?

MJ REIT focuses on acquiring and managing properties primarily in state-legal cannabis markets.

What is the current status of Silver Stem Fine Cannabis?

Silver Stem has been profitable for 14 years, operating 10 dispensaries and two cultivation facilities in Colorado.