Secured by industrial and agricultural real
property in the Hudson Valley, the loan will be utilized to
help advance ongoing growth of leading a leading New York cultivation, manufacturing,
distribution platform, and brand portfolio
NEW
YORK, Nov. 16, 2023 /PRNewswire/ -- 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 and processing property in Hudson Valley, New York (the "Property").
The Property is a partnership between Pura, a seasoned
California operator and Hepworth
Farms, a 7th-generation New
York based agricultural business operator. Hepworth Pura's
brand portfolio includes Old Pal, Jetty Extracts, Smokiez,
Miss Grass, Cookies, and many
others. Hepworth Pura has partnered with Final Bell to advance its
execution on high-throughput manufacturing and launch of products
into the market. Their high-quality cannabis products can already
be found in more than 95% of the licensed cannabis dispensaries in
New York.
Kyle Shenfeld, President of
Rainbow, remarked: "We are pleased to close this real estate-backed
transaction on a Property that includes over 34,262 square feet of
industrial space and 40 acres of farmable land with an additional
10 acres suitable for future expansion. Hepworth Pura is poised to
be a market leader in New York,
which is finally gaining momentum on its licensed dispensary roll
out. Hepworth Pura is bringing to the NY Market a diverse brand
portfolio with recognized national brands and up and coming NY
brands."
The building was previously operated as a production and
distribution facility for local agricultural products.
The Hepworth family has continuously operated an agricultural
enterprise on the property for over 200 years and have fully
transitioned its operation at this facility to cannabis with over
$2 million invested in improvements
and $3 million of secured equipment.
The Hepworth family continues to operate their non-cannabis
business called Hudson Valley Grown, which grows over 200 varieties
of vegetables across its 500 acres of farmland in New York.
"The combination of the Hepworth family's longstanding
excellence in New York agriculture
and Pura's proven expertise in organic cannabis cultivation and
marketing creates a future powerhouse in the nascent New York market," says Andrew Kaye, Chief Commercial Officer of Sweet
Leaf Madison Capital. "We are proud to provide financing and to
participate in the growth of a critical US market for compliant
cannabis."
About Rainbow Realty Group
Rainbow Realty Group and its affiliates have deployed over
$130 million in licensed retail and
industrial properties in the United
States. Rainbow offers sale-leaseback and mortgage financing
with an existing portfolio of over 60 properties across 9 states.
Rainbow's parent co, 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 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 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:
Tyler Gilliam
Tyler@rainbowrg.com
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SOURCE Rainbow Realty Group II, LLC; MJ Real Estate Investment
Trust; Sweet Leaf Madison Capital
