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