NEW YORK — 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: 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 mj-reit.com.
