Rainbow Realty Group Announces Launch of Fund IV: Capitalizing on a Moment in Time
NEW YORK, Feb. 1, 2024 /PRNewswire/ -- Rainbow Realty Group, LLC ("RRG" or "Rainbow") is proud to announce the launch of Rainbow Realty Group Fund IV LLC ("Fund IV"), a private real estate fund, offering investment opportunities under Rule 506(c) of Regulation D. It is accessible only to accredited investors and is expecting its first close by the end of February.
Rainbow has a six-decade track record of success investing in the real estate industry through its sponsor and largest investor Gould Investors L.P. ("Gould"). Gould manages $2 billion in assets and controls two public REITs: One Liberty Properties, Inc. and BRT Apartments Corp. Inc. Gould is the largest investor in Rainbow, having invested more than 25% of the LP capital in the strategy to date.
Since Rainbow's first fund launched in 2019, Rainbow has established a solid foothold as a real estate financier in the niche U.S. cannabis real property market. Typically, Rainbow either purchases or mortgages high-quality real property. Rainbow underwrites real estate at its alternate use value, meaning that Rainbow's valuation is based upon the property's value if used for traditional retail or industrial purposes. Rainbow's basis is often a fraction of the operator's actual investment in a property due to its conservative underwriting approach.
Spanning the firm's first three investment vehicles, Rainbow has deployed over $135M across 57 properties in 10 states. Rainbow's portfolio is performing, and Rainbow has not missed a quarterly distribution payment since its inception in 2019.
Per Kyle Shenfeld, CEO of Rainbow: "We are excited to continue building upon our proven strategy. Due to a lack of traditional financing options in the nascent cannabis industry, Rainbow is earning higher-than-usual real estate level returns on low-risk stabilized real estate transactions. Rainbow and the Gould organization bring an institutional mindset – with over 230 years of real estate investing experience on our investment committee – to a burgeoning industry that is starting to mature."
Though cannabis remains federally illegal, 24 states now allow recreational consumption, and 41 have medical cannabis programs. As new states legalize or move from medical to recreational cannabis use, the pool of potential, highly qualified Rainbow counterparties increases. Despite this growing demand for capital, the existing barriers to entry for institutional capital in the industry remain. So long as this dichotomy exists, Rainbow believes it can capitalize on a moment in time where potential rewards greatly outweigh perceived risks in this specific sector.
Next Steps:
We are open to new investors. If you have any questions or would like a more comprehensive update on Rainbow, please contact Jack Levy at jack@rainbowrg.com.
About Rainbow Realty Group:
Rainbow Realty Group and its affiliates are real estate companies focused on retail, industrial, and greenhouse properties with cannabis companies in the United States. Rainbow offers sale-leaseback and mortgage financing with a portfolio consisting of 57 properties across 10 states. Rainbow's parent co, Gould Investors L.P., has been in the real estate industry for 60+ years. Gould is a significant shareholder of NYSE: BRT and NYSE: OLP. For additional information, please visit: https://rainbowrg.com/
Important Information
Statements included herein may constitute "forward-looking statements" within the meaning of the U.S. securities laws, and may relate to future events or our future performance or financial condition. These statements are not guarantees of future performance, condition or results and involve a number of risks and uncertainties. Actual results may differ materially from those in the forward-looking statements as a result of a number of factors, including those described from time to time in our filings with the Securities and Exchange Commission and others beyond Rainbow's control. Rainbow undertakes no duty
to update any forward-looking statements made herein.
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SOURCE Rainbow Realty Group, LLC
