Secured by industrial real property in
Santa Ana, the loan will be
utilized
to help advance ongoing growth of leading craft
cannabis producer
NEW
YORK, May 10, 2023 /PRNewswire/ -- Rainbow
Realty Group II, LLC ("Rainbow"), in collaboration with Sweet Leaf
Madison Capital and MJ Real Estate Investment Trust, announced the
closing of a senior mortgage secured by a highly advanced cannabis
cultivation property in Santa Ana,
California.
The property owner/borrower is a seasoned California operator that owns a portfolio of
high-end and authentic legacy cannabis brands including BLEM and
Cali Lotus. The leadership team has been successfully operating in
the cannabis industry for over a decade and continues to build one
of the most prolific businesses in California. Its superior craft cannabis
demands a market price more than three times the average flower
price in California.
Kyle Shenfeld, President of
Rainbow, remarked: "We are happy to close this real estate-backed
transaction with perhaps the best cannabis cultivator in the
country. It will be exciting to watch these brands grow. We look
forward to more opportunities with this borrower as well as our
co-lenders."
Located in Santa Ana, the
property is one of the most sought-after industrial submarkets in
southern California. The building
boasts state-of-the-art technology and design, making it one of the
more advanced cannabis cultivation facilities in the country. With
the help of this new financing, the borrower is doubling its
operational footprint, and will continue to produce some of the
highest quality cannabis in the world.
"We value the opportunity to collaborate with a sophisticated
lender like Rainbow on this deal," said Bryan Gordon, CEO of Sweet Leaf Madison Capital.
"This high-quality real estate is being managed by an established
operator with a track record of success. We are pleased to be part
of this exciting opportunity."
The concrete industrial building has received more than
$6 million of modernization and
improvements including power, air-handling and HVAC. The use of the
loan proceeds is to pay off existing construction debt and
contractors.
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 over 60 properties across 9 states.
Rainbow's parent co, Gould Investors L.P., has been 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 Sweet Leaf Madison Capital
Sweet Leaf Madison Capital provides customized, "seed-to-sale,"
asset-based lending solutions to the underserved middle-market of
the cannabis industry by originating equipment financing, real
estate loans, and senior secured term loans. The company is based
in Denver and has offices in
New York City and West Palm Beach.
To learn more visit Sweet Leaf Madison Capital online or continue
the conversation on LinkedIn.
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; Sweet Leaf Madison Capital; MJ
Real Estate Investment Trust