Cannabis Real Estate Fund Updates Its Target Returns To 18.1% From Previous Target Of 13.1%

Rainbow Cannabis Fund II was launched on CrowdStreet in December 2021 to provide capital to cannabis operators through sale-leaseback acquisitions and first mortgage loans secured by existing real property.

See original offering announcement: New Cannabis Real Estate Investment Fund Targeting A 13.1% Annual Return

The fund manager, Rainbow Realty Group, previously closed Rainbow Cannabis Fund I, which has just secured asset backed financing from an FDIC-member bank at attractive terms and anticipates securing similar financing for Rainbow Cannabis Fund II. 

The initial target internal rate of return (IRR) for Fund II was 13.1% on an unlevered basis. However, the ability to obtain traditional forms of financing will allow the fund to hit a higher target return and the fund manager is updating the offering’s targeted investor IRR to 18.1% once it is fully funded and secures leverage at similar rates as Fund I.

Fund II is seeking to raise up to $25,000,000 through its offering on CrowdStreet and has already closed three transactions, with a fourth expected to close in early March. The next closing deadline for Rainbow Cannabis Fund II is March 1, 2022. 

View offering details for Rainbow Cannabis Fund II on CrowdStreet

Photo: Courtesy of CrowdStreet