We're happy to announce our Partnership with Rainbow Realty Group in Cannabis Real Estate Fund II, which provides HappyNest REIT's shareholders with exposure to cannabis-related real estate transactions.
Rainbow Realty Group has an unbeatable reputation and first-class financial backing through Gould Investors LP, NYSE: BRT, NYSE: OLP. They have over 60 years of experience in the real estate industry.
This investment proposition is riskier than a standard net-lease transaction with a corporate guarantee. However, there are myriad reasons why we believe investing in the cannabis real estate industry helps add value for our investors:
Track-Record - Cannabis Real Estate Fund II follows on the heels of Rainbow Realty Group's successful inaugural Fund, which deployed over $47 Million into cannabis-related real estate and is currently delivering its investors approximately 10% in annual distributions.
Cannabis-related businesses can't easily access funds from federally chartered companies or banks, which presents an opportunity for non-traditional lenders to offer services at a premium.
Growth Potential - The value of this investment is not only on the high rate of return earned from rent and mortgage payments but also on the growth potential that would come from the legalization of cannabis on a federal level.
Downside Protection - Should the regulatory environment become stricter or stay the same, the Cannabis Real Estate Fund only finances core properties used for cannabis operations. Our thought process is that these locations are viable for other businesses too.
The Fund's manager, Gould Investor L.P., has committed to investing at least $10M, showing a steadfast commitment to the project and belief in the investment strategy.
Bottom Line
These investments have a similar risk profile to traditional real estate but a much higher return potential.