NEW
YORK, Aug. 9, 2023 /PRNewswire/ -- Rainbow
Realty Group, LLC and Rainbow Realty Group II, LLC (collectively
"Rainbow") and MJ Real Estate Investment Trust ("MJ REIT"),
nationwide owners and lenders of real estate to the US cannabis
industry, today announced that it acquired, in a sale-leaseback, a
21,600 square foot modern concrete industrial building located in
Sacramento for $4.0 million. The going-in unlevered cap
rate on the transaction is 12.6%.
At closing, the tenant entered into a 15-year absolute net
lease. The Tenant, who has been a profitable operator in
California since 2019, is
consolidating its operations into the subject property and further
improving the facility for cultivation, distribution, and
manufacturing operations. Rainbow will also fund up to
$420,000 in Tenant Improvements
subject to certain construction milestones being reached.
Additionally, Rainbow announces the closing of a $5.85 million bank loan which is secured by a
5-unit portfolio of owned retail properties in Missouri. The
10-year loan has a fixed rate of 7.53%.
Kyle Shenfeld, President of
Rainbow, remarked: "We are excited to add yet another high-quality
industrial property to our growing portfolio at an unlevered 12.6%
cap rate. The closing of the bank loan, at a 7.53% fixed
interest rate, is at an excellent cost of capital considering the
financing challenges that exist within the cannabis industry.
Both transactions reinforce our initial business strategy of
providing above market risk-adjusted returns on down-side-protected
real estate collateral, which is usable by both cannabis and
non-cannabis operators."
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 50 properties across 8 states.
Rainbow's parent co, Gould Investors L.P., has been in the real
estate industry for 60+ years. Gould is a significant shareholder
of NYSE:BRT and NYSE:OLP. For additional information please visit:
https://rainbowrg.com/
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; Rainbow Realty Group II, LLC;
MJ Real Estate Investment Trust
