Rainbow Realty Group IV LLC, a real estate financier for US cannabis companies, in collaboration with Rainbow Realty Group II LLC, GEMA CP Fund I LLC and MJ Real Estate Investment Trust, has finalized an $8.5 million acquisition loan, solidifying its commitment to enhancing cannabis cultivation in New York’s Hudson Valley. This strategic financing, secured by a state-of-the-art greenhouse property marks a significant step forward in expanding a market-leading operation.
Modernizing And Expanding Key Facilities
The 70-acre site, operated by the borrower for over a year, includes facilities that stand out in the region for their technological advancements and capacity for high-quality cannabis production. The loan will be directed towards further modernizing the property, which already boasts a 200,000 square foot modern greenhouse, alongside additional hoop houses and support structures.
The property’s infrastructure includes an efficient, centralized watering system capable of pumping over 200 gallons per minute, a robust 10mm BTU biomass heating system, five independent energy sources, and seven on-site wells, setting a benchmark for cost-effective cannabis production in the state.
Strategic Investments Boost NY's Cannabis Market
Kyle Shenfeld, CEO of Rainbow, highlighted the dual benefits of the investment: “We are excited to close this real estate-backed mortgage transaction in the Hudson Valley. The property has a strong alternate use case, and the borrower is well-positioned to succeed. We are strategically investing on the cultivation side in New York, though the struggles of New York’s dispensary roll out are largely behind us.”
Read also: It’s A Green Day In New York: 137 Cannabis Licenses Granted, New Jersey Still In The Lead
If you are keen to explore investment opportunities within the cannabis sector, consider attending Benzinga’s New Jersey Market Spotlight on June 17. Network with key industry players, hear from the top operators, and close deals that will shape the future. Act now— spots are filling fast. Get your tickets here.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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