Rainbow Realty Group closed a 12-million-dollar senior mortgage to Verano Holdings Corp.
Two properties located in North Las Vegas (Nevada) and Coolidge (Arizona), which are used for cultivation and processing, secured the loan announced on Monday. Rainbow has announced that this cross-collateralized home loan is its first in Arizona. It also expands the company’s footprint from 12 to 13 states.
Tyler Gilliam said, “We’re very happy to be working with an industry leader like Verano in this transaction.” These properties, which are critical to Rainbow’s mission, have been located in real estate markets that are strong and updated according to high standards.
Arizona’s property is 7.44 acres and has three buildings with a total of 51,981 sq. ft., while Nevada includes a building that measures 41,625 square feet on 4.86 acres. Verano operates in both states from these facilities.
Verano has 15 processing and cultivation facilities, 153 dispensaries, and more than 1 million square feet in cultivation space, spread across 13 different states.
Rainbow Realty Group IV has now completed five transactions, taking its deployment rate to 64%. Fund is open to new investors until the end of April.
Rainbow had funded an initial mortgage in Denver, secured by the 16,700-square foot industrial property.
Rainbow Realty Group has deployed more than $180 million across real estate transactions in the U.S. Rainbow Realty Group is a leader in providing mortgage and leaseback financing for cannabis businesses. Currently, its portfolio contains more than 50 properties spread across 12 states.
Verano’s mortgage was made with Rainbow Realty Group II LLC & MJ Real Estate Investment Trust. MJ Real Estate Investment Trust is a hybrid REIT that focuses on “generating stable and above market returns” via investments in legal cannabis markets in each state.
Verano’s latest financial report shows that the company reported a net loss for its fourth quarter of $272.7 millions, despite a revenue decline of 8% over last year. Verano reported $87.8 millions in cash as of December 31, 2024 and $414,000,000 in debt. The company plans to cut capital expenditures to $25-40,000,000 in 2025, from $99,000,000 in 2024.