Rainbow Realty and MJ Real Estate Investment Trust closed a senior mortgage secured by a newly constructed industrial building in Detroit, Michigan.
The 110,670 SF building sits on 5.49 acres and is operating as a licensed cannabis cultivation facility to service the recreational and medical markets in Michigan. The borrower purchased the land in 2018, secured its cannabis license in 2022, and thereafter built a state-of-the-art facility. The borrower also holds interests in several retail dispensary licenses across Michigan, where its products are slated for sale.
Ben Bolanos, Rainbow's Chief Operating Officer, expressed enthusiasm about the transaction, stating, "We are thrilled to finalize this mortgage transaction secured by a cutting-edge industrial facility. Equipped with advanced growing technology and equipment, the Property positions the borrower to deliver high-quality cannabis products at competitive costs."
The announcement comes as Michigan's cannabis market recently surpassed California to become the largest in the United States by sales volume as of June 2024. This transaction marks Rainbow's third investment in Michigan, reflecting the firm's strong confidence in the state's robust cannabis market.
Rainbow continues to expand its footprint in strategic markets across the U.S., leveraging its expertise in real estate financing and investment to capitalize on emerging opportunities in the cannabis sector.
For more information:
Rainbow Realty Group
www.rainbowrg.com