Secured by industrial and agricultural real property in the Hudson Valley, the loan will be utilized to help advance ongoing growth of leading a leading New York cultivation, manufacturing, distribution platform, and brand portfolio
NEW YORK, Nov. 16, 2023 /PRNewswire/ — Rainbow Realty Group II, LLC (“Rainbow”), in collaboration with Sweet Leaf Madison Capital and MJ Real Estate Investment Trust, announced the closing of a senior mortgage secured by a highly advanced cannabis cultivation and processing property in Hudson Valley, New York (the “Property”).
The Property is a partnership between Pura, a seasoned California operator and Hepworth Farms, a 7th-generation New York based agricultural business operator. Hepworth Pura’s brand portfolio includes Old Pal, Jetty Extracts, Smokiez, Miss Grass, Cookies, and many others. Hepworth Pura has partnered with Final Bell to advance its execution on high-throughput manufacturing and launch of products into the market. Their high-quality cannabis products can already be found in more than 95% of the licensed cannabis dispensaries in New York.
Kyle Shenfeld, President of Rainbow, remarked: “We are pleased to close this real estate-backed transaction on a Property that includes over 34,262 square feet of industrial space and 40 acres of farmable land with an additional 10 acres suitable for future expansion. Hepworth Pura is poised to be a market leader in New York, which is finally gaining momentum on its licensed dispensary roll out. Hepworth Pura is bringing to the NY Market a diverse brand portfolio with recognized national brands and up and coming NY brands.”
The building was previously operated as a production and distribution facility for local agricultural products. The Hepworth family has continuously operated an agricultural enterprise on the property for over 200 years and have fully transitioned its operation at this facility to cannabis with over $2 million invested in improvements and $3 million of secured equipment. The Hepworth family continues to operate their non-cannabis business called Hudson Valley Grown, which grows over 200 varieties of vegetables across its 500 acres of farmland in New York.
“The combination of the Hepworth family’s longstanding excellence in New York agriculture and Pura’s proven expertise in organic cannabis cultivation and marketing creates a future powerhouse in the nascent New York market,” says Andrew Kaye, Chief Commercial Officer of Sweet Leaf Madison Capital. “We are proud to provide financing and to participate in the growth of a critical US market for compliant cannabis.”
About Rainbow Realty Group
Rainbow Realty Group and its affiliates have deployed over $130 million in licensed retail and industrial properties in the United States. Rainbow offers sale-leaseback and mortgage financing with an existing portfolio of over 60 properties across 9 states. Rainbow’s parent co, Gould Investors L.P., has successfully invested in the real estate industry for 63 years. Gould is a significant shareholder of NYSE:BRT and NYSE:OLP. For additional information please visit: https://rainbowrg.com/
About Sweet Leaf Madison Capital
Sweet Leaf Madison Capital provides customized, “seed-to-sale,” asset-based lending solutions to the underserved middle-market of the cannabis industry by originating equipment financing, real estate loans, and senior secured term loans. The company is based in Denver and has offices in New York City and West Palm Beach. To learn more visit Sweet Leaf Madison Capital online or continue the conversation on LinkedIn.
About MJ REIT
MJ REIT is a hybrid real estate investment trust that seeks to provide investors with stability and above-market returns derived mainly through monthly income. The Fund has a thematic emphasis on state-legal cannabis markets, focusing on industrial and retail commercial real estate. For more information, please visit https://mj-reit.com/
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SOURCE Rainbow Realty Group II, LLC; MJ Real Estate Investment Trust; Sweet Leaf Madison Capital
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