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Rainbow Realty Group Completes $8.5 Million Loan to New York based Cannabis Company

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 company, 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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