Sacramento Cannabis Portfolio Secures $20M Loan

Rainbow Realty Group, a real estate firm focused on the financing of retail, industrial and greenhouse properties associated with cannabis companies, has closed a $20 million loan cross-collateralized by nine properties in Sacramento, CA. License types include three dispensaries, two cultivators, two manufacturers, two delivery businesses and a microbusiness.

Funds from the transaction will be used for property improvements as the tenants continue to invest in their operation. 

“We are pleased to close this transaction and support the burgeoning Sacramento cannabis market,” said Rainbow’s President, Kyle Shenfeld. “The properties within the portfolio have inherent non-cannabis use cases. We have high regard for our borrower who holds the lead market share in Sacramento.”

According to the city, Sacramento cannabis sales in 2021 totaled $820 million, and the five dispensaries within the collateral represent 12.5% of the total 40 licenses awarded in the city.