Rainbow Realty Group II, LLC and its affiliates closed a senior mortgage cross-collateralized by 4 properties in Santa Barbara County, California. The properties are owned and operated by one of the largest farming, cultivating, manufacturing, processing, and distributing cannabis companies in California.
The borrower has averaged 9-figure revenues over the last several years. It has a wide range of products that can be found in 90% of the dispensaries across the state of California. The properties in the collateral pool are industrial/commercial real estate, with 7 active cannabis licenses. Funds from this transaction will be used to refinance existing debt and to purchase equipment to help the borrower build out new product lines.
Kyle Shenfeld, president of Rainbow, stated: "Rainbow's mortgage will benefit this best-in-class operator. Funds from the transaction will be used to bolster the company's balance sheet and to facilitate the manufacturing of new product lines, which are already selling like at a rapid pace. The borrower has a proven track record of launching the most competitive and best-selling products in California. We are thrilled to be a part of their next wave of innovation."
Capital remains constrained in the cannabis industry at large, and as a result, Rainbow's pipeline of opportunities is overflowing. Rainbow will continue raising capital into its second fund through the end of March 2023.
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