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.
Photo: Courtesy of CrowdStreet
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