Our Story

Portfolio

Strategy

Counterparties

Team

Press

Rainbow Realty Group Quarterly ​Newsletter Q3Y24

July 31st, 2024

The second quarter of 2024 was strong for the cannabis industry. Significant progress was made on rescheduling. Medical-only states made a push to permit recreational use. Normalization is in sight. There are legitimate industry tailwinds for the first time in years, and Rainbow is poised for success.

Firm Highlights:

• Rainbow Realty Group IV ("Fund IV") will continue accepting new investors for the next 3 months. Fund IV made its first distribution to investors at an annualized rate of 10%.
  
• Fund IV had its second closing on July 1st, 2024: a $7.5M loan on a brand-new industrial property in Inkster, Michigan. Fund IV projects to earn an unlevered IRR of 18.70%: Read More
  
• Fund II received a payoff + profit participation on a mortgage it originated in 2022. The property was sold in May 2024, netting Fund II an unlevered deal IRR of 65%.
  
• To learn more about all of Rainbow's completed transactions, click here
  
• In June, we held our first event in NYC for our investors, counterparties, partners, and friends. Everyone had a great time sampling products and learning more about Rainbow's model for success in this industry. We encourage you to join next year's event!
  

Industry Update:

• The cannabis rescheduling 60-day comment period ended on July 22nd, 2024. The DEA received 43,000 comments on its proposed Schedule III classification. The National Cannabis Industry Association said 91% of the comments were in favor of rescheduling. Read More
  
• In November, Florida residents will have the ability to vote on Amendment 3 to legalize recreational cannabis use in the state. The Amendment will need 60% of the votes to be passed. Poll results suggest the Amendment will pass, but Gov. DeSantis will have the opportunity to approve or veto the Amendment. Read More
  
• New York is finally getting the illegal dispensary market under control. After years of poor execution, Gov Hochul and Mayor Adams created a task force dedicated to closing illegal shops throughout New York City. In the last 3 months, they have closed hundreds of illegal stores and have extended licenses to dozens of legal operators. Read More
  
• Ohio residents voted in favor of legalizing recreational cannabis use, and there has been a slow rollout of recreational cultivators and dispensaries across the state. Fund II's payoff + profit participation, which earned a 65% IRR, was a dispensary property in Ohio. Read More
  
• Kamala Harris is the presumptive nominee for the Democratic party and has a complicated history with cannabis. As a prosecutor in California, she aggressively prosecuted weed-related crimes, but as she moved from state to federal politics, she has become a strong advocate for full federal legalization. Read More
  

Distribution Summary:

We are happy to report our 18th quarter of uninterrupted distributions. See below:

© 2023 RAINBOW RG. ALL RIGHTS RESERVED