Rainbow Realty Group and MJ Real Estate Investment Trust have closed a senior mortgage secured by a highly advanced cannabis cultivation property in Hudson Valley, New York.
The 70-acre property has been operated by the purchaser—Rainbow's borrower—for over a year. The borrower has already upgraded the facility, and proceeds from the loan will be used to continue modernization. The borrower currently manages 8 licenses at the Property and has already produced some of the highest-quality cannabis in the state.
The property includes 200,000 SF of gutter-connected modern greenhouse, 100,000 SF of heated hoop houses, and 70,000 SF of supporting warehouse structures. The facility boasts efficiencies that allow the borrower to grow cost-effective cannabis, including a centralized and automated watering system that can pump over 200 gallons per minute, a 10mm BTU biomass heating system, 5 independent energy sources, and 7 on-site wells.
Kyle Shenfeld, CEO of Rainbow, remarked: "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 rollout are largely behind us."
For more information:
Rainbow Realty Group
www.rainbowrg.com