Specialty Financing Secured by U.S. Cannabis Real Estate
Rainbow Realty Group (“RRG”), founded in 2018, is a specialty finance company focused exclusively on real estate opportunities within the U.S. cannabis industry. RRG and its affiliates have been in the real estate industry for over 60 years and currently manage two public REITs.
RRG buys real estate through sale-leasebacks and RRG finances real estate through senior-secured mortgages. RRG underwrites real estate at non-cannabis values, discounting any cannabis-specific premiums. Despite turmoil in the cannabis industry over the last few years, RRG has suffered zero recorded losses across its entire portfolio.
Rainbow was created to bridge the financial gap for cannabis companies in the United States. Due to federal illegality, it is extremely difficult for cannabis companies to obtain traditional means of financing. Rainbow is not a cannabis investor per se: it is a real estate financier who works with cannabis tenants and borrowers. Rainbow underwrites non-cannabis or “traditional” real estate values for retail, industrial and greenhouse properties. Rainbow will purchase or mortgage real property, depending on the operator’s needs.
RRG works with its tenants and borrowers to help tailor the perfect loan or lease for the specific situation. RRG has deployed over $130,000,000 through the first three funds across 58 properties in 10 different states. No transaction is the same, and we are the only lender in the space that offers both senior mortgages and sale-leasebacks.
RRG values all its investors and believes that transparency is the cornerstone of asset management. RRG hosts a live data room of its current investments, and RRG shares quarterly updates with investors, which showcase its progress. RRG always makes itself available to speak with investors to share more information about our process, deal flow, and returns and to answer any other questions they may have.
RRG is the intersection of a disciplined real estate investment thesis and a rapidly expanding cannabis market. Due to federal illegality, RRG’s competitor set is limited,leaving the industry starved for capital. RRG is selective, ultimately investing in less than 2% of the deal flow it reviews.RRG’s portfolio is only 7.7% levered, which makes it much less sensitive to interest rate sensitivity than traditional real estate.
Years of real estate investment experience on our investment committee
By The Numbers
Properties Across The United States
Leverage on our portfolio
Assets Under Management through RRG Fund I, II, III, & co-investements
Our Current Investment Properties
RRG has completed 27 transactions across 58 properties in 10 states