Rainbow Realty Completes $3.92M Loan To Ohio Based Cannabis Real Estate Portfolio

Rainbow Realty Group II, LLC and its affiliates closed a senior-secured mortgage cross-collateralized by 5 retail dispensary properties in Ohio. The five properties were approved in the latest round of license applications. There are currently 130 dispensary licenses in the State which legalized medical cannabis in 2018 and has since seen $1.09 billion in total sales.

The retail properties are located in Columbus, Cincinnati, Cleveland, and Dayton. They are leased and operated by 4 distinct tenants who are multi-state operators under long term NNN leases.

The borrower is a cannabis commercial real estate development and property holding company. Funds from the transaction were used to facilitate the purchase of the 5 properties in a debt/equity transaction. In addition to its typical double-digit interest rate and transaction fees, Rainbow will also receive a significant profit participation in the net profits.

Kyle Shenfeld, president of Rainbow, stated: "We are excited to close this unique transaction, the borrower worked diligently to tie up dozens of dispensary properties in Ohio. Rainbow was able to step in as a financier when a portion of those properties came to fruition. The compliment of the borrowers site selection and license acquisition efforts on the front end, and Rainbow's available capital and real estate expertise at closing, makes for an excellent partnership. Ohio is a limited license state, and the dispensaries are well-positioned for success."

Due to growing demand for our product, Rainbow will continue raising capital into its second fund through the end of Q1 2023.

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Photo by Mackenzie Marco on Unsplash