Sacramento Cannabis Market On The Rise Thanks To Rainbow Realty's $20M Loan, Here's What Happened

Start generating passive income through real estate.

Own a piece of your favorite cities through diversified real estate investments in the country's top markets

*Terms and conditions apply. Visit Nada's website for more details.

Rainbow Realty Group, LLC and its affiliates announced the closing of a loan cross-collateralized by 9 properties in Sacramento, CA.

“At the properties, there are 13 tenants, of which 12 are licensed, cannabis operators. License types include 3 operating dispensaries, 2 dispensaries in development, 2 cultivators, 2 manufacturers, 2 delivery businesses, and a micro business,” reads a press release.

Funds from this transaction will be used for improvements at the properties as the tenants continue to invest in their operations.

“Per the city of Sacramento, there was $820,400,000 of legal cannabis sales in 2021, an increase of 78.6% over 2020. The 5 dispensaries within the collateral represent 12.5% of the total 40 licenses awarded in Sacramento.”

"We are pleased to close this transaction and support the burgeoning Sacramento cannabis market," said Kyle Shenfeld, president of Rainbow Realty Group. "The properties within the portfolio – a blend of retail, industrial, and office – have inherent non-cannabis use cases. We have high regard for our borrower, who holds the lead market share in Sacramento."

Speaking Of Cannabis-Related REITs

Early this month, MJ REIT, a hybrid real estate investment trust focused on acquiring, owning, leasing, and providing mortgages to properties operating in state-legal cannabis markets in the U.S., partnered with Rainbow Realty Group and Arcview Capital for its market debut.

“By partnering with MJ REIT, we’ll help provide the capital needed for companies in this rapidly growing industry. With our multi-generational history of real estate investing, Rainbow employs a conservative underwriting approach and values properties using ‘non-cannabis’ valuations, unlike other cannabis REITs,” said Shenfeld at that time

Rainbow Realty Group acts as sub-manager to MJ REIT, responsible for selecting and underwriting investments, while REIT focuses on industrial and retail commercial real estate for cannabis-related businesses.

Image by Rainbow Realty Group LLC.

Market News and Data brought to you by Benzinga APIs
Posted In: CannabisNewsREITMarketsReal EstateArcview CapitalMJ REITRainbow Realty Group LLC
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!

Cannabis rescheduling seems to be right around the corner

Want to understand what this means for the future of the industry? Hear directly for top executives, investors and policymakers at the 19th Benzinga Cannabis Capital Conference, coming to Chicago this Oct. 8-9. Get your tickets now before prices surge by following this link.