What Rainbow Realty Group does

Rainbow Realty Group (RRG) is a privately held, special-situation real estate investment firm founded in 2018 that finances real estate occupied by compliant U.S. cannabis operators. Headquartered in the Graybar Building at 420 Lexington Avenue, New York, RRG originates two core products: senior-secured, non-recourse mortgage loans (11–15% interest, 17–23% target IRRs, 60–70% LTV on real estate value, 2–4 year terms) and sale-leaseback financing structured as absolute NNN leases (10–13% non-leveraged going-in cap rates, 10–15 year terms with extension options). The firm applies a proprietary underwriting framework that values cannabis-occupied properties at non-cannabis / go-dark / alternate-use rents rather than operator cash flows, combined with a stringent deal-flow filter (less than 2% acceptance rate; 95% of opportunities fail at the initial real-estate evaluation step). Capital is raised from accredited investors through four sequential private funds (Fund I 2019, Fund II 2021, Fund III 2023, Fund IV 2024) deployed via the MissionInvest portal, and the firm also acts as submanager of the affiliated MJ REIT.

RRG serves two customer segments: licensed U.S. cannabis operators (multi-state and single-state, from SMBs to enterprise MSOs such as Verano Holdings) needing real estate capital that is structurally unavailable from traditional banks due to federal cannabis illegality and IRS Code 280E, and accredited investors / family offices seeking hard-asset-secured cannabis real estate exposure. The firm is affiliated with Gould Investors L.P. (a $2.5B+ master limited partnership) and two NYSE-listed REITs (One Liberty Properties and BRT Apartments Corp.), with the Gould Executive Board serving as RRG's Investment Committee. The 1–10 person team is led by CEO Kyle Shenfeld, COO Ben Bolanos, CFO Isaac Kalish, and Chairman Matt Gould (40+ years of real estate investment experience). Across the platform, RRG has deployed $170M+ through 62 properties in 12 states, reports an 11.50% 2024 average distribution rate across Funds I–IV, and claims zero losses on 57 financed properties plus 18 consecutive quarters of uninterrupted distributions. The go-to-market is relationship-driven and sales-led, supplemented by an event-driven layer (NYC investor events, The Real Deal sponsored content) and direct LP acquisition through a proprietary investor portal and data room.

Name

Rainbow Realty Group

Legal name

Rainbow Realty Group LLC

Website

https://rainbowrg.com

Company type

Private

Founded year

2018

Headcount range

1–10 employees

Short description

Rainbow Realty Group, founded in 2018 and headquartered in New York, is a special-situation real estate investment firm that provides senior mortgage and sale-leaseback financing to licensed U.S. cannabis operators. It serves cannabis companies and accredited investors through four sequential private funds, with $170M+ deployed across 62 properties in 12 states.

Ownership category

akta.pro rank

Product category

Commercial Real Estate Lending (Cannabis Sector)

NAICS

Real Estate Credit (522292)

SIC

Loan Brokers (6163)

akta.pro primary industry

Real Estate Private Credit (CRE Debt) (FSANADAG)

akta.pro secondary industries

SME Commercial Real Estate (CRE) Lending (FSABABAG), Direct Lending — Specialty Finance (Consumer/SME Lending Platforms) (FSAHAJAF), Agency (GSE) Multifamily Lending (FSALADAD)

Keywords

• Cannabis real estate lending
• Senior mortgage financing
• Sale-leaseback financing
• Special situation real estate
• Private real estate funds

Headquarters

HQ city

Great Neck

HQ country

United States

HQ region

North America

Offices1 record

Markets served

GTM type

B2B

Offering type

Services

Cost components

Personnel, Operations, Technology or R&D, Marketing or Sales, Others

Revenue model

1. Senior Mortgage Interest: Origination of senior-secured, non-recourse mortgage loans to U.S. cannabis operators, charging 11–15% interest rates and targeting 17–23% IRRs (including fees). 2–4 year loan terms with extension and prepayment flexibility. 60–70% LTV on real estate value and 30–45% LTV on cannabis value.
2. Sale-Leaseback Rental Income: Acquisition of cannabis-occupied real estate followed by absolute NNN leasebacks to operators at 10–13% non-leveraged going-in cap rates, with 10–15 year terms plus multiple 5- or 10-year extension options.
3. Profit Participation / Equity Multiple on Loan Repayment: Profit participation interests on mortgage payoffs and refinancings; case studies show realized deal IRRs ranging from 11.70% to 65.00% and equity multiples from 1.26x to 2.16x.
4. Private Fund Capital Raising (Funds I–IV): Sequential private funds (Fund I 2019, Fund II 2021, Fund III 2023, Fund IV 2024) deployed to accredited investors via the MissionInvest portal, with Fund IV having raised $25M+ as of late 2024. Funds distribute quarterly; 2024 average distribution rate across Funds I–IV was 11.50%.

Pricing tiers

Go-to-market motion2 records

Distribution channels4 records

Marketing channels7 records

Core offering

Rainbow Realty Group (RRG) is a special-situation real estate investment firm that finances real estate occupied by compliant U.S. cannabis companies. The firm originates senior-secured, non-recourse mortgage loans and structures sale-leaseback transactions on cannabis-tenant properties, deploying capital through sequentially launched private funds (Funds I–IV) and acting as submanager of MJ REIT. RRG underwrites each property at its non-cannabis / go-dark / alternate-use value, targeting 17–23% IRRs on senior mortgages and 10–13% non-leveraged cap rates on sale-leasebacks.

Product overview

Rainbow Realty Group (RRG) is a special-situation real estate financier, founded in 2018, that offers a platform-plus-modules style architecture of investment products serving the U.S. cannabis industry. Its core offering consists of four sequentially launched investment vehicles — Fund I, Fund II, Fund III, and Fund IV — that deploy capital through two distinct financing modules: Senior Mortgage Financing and Sale-Leaseback Financing. Fund III is the senior-mortgage-only joint venture with a large family office, while Fund IV is the current flagship raising vehicle. The platform also extends to MJ REIT, an affiliate private REIT for which RRG serves as submanager, broadening the investor base beyond the flagship funds. Across the platform, RRG has deployed over $170M through four funds across 62 properties in 12 states, earning a 2024 average distribution rate of 11.50% across Funds I–IV.

Differentiator

Problem solved

Functional benefit

Products and services

• Rainbow Realty Group Fund I
• Rainbow Realty Group Fund II
• Rainbow Realty Group Fund III
• Rainbow Realty Group Fund IV
• Senior Mortgage Financing
• Sale-Leaseback Financing
• MJ REIT Sub-Management

Quantifiable outcome

• $170M+ deployed across 62 properties in 12 states; over $180M total cannabis-related real estate deployment as of March 2025
• +4 more outcomes

Named customers13 records

Segments3 records

Ideal customer profiles2 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Feature3 records

Partnerships

Nine partnerships are on record, tiered flagship, core and minor.

• Verano Holdings Corp.flagshipStrategic or Co-development Partner · 24 March 2025Rainbow Realty Group completed a $12 million senior mortgage loan to Verano Holdings Corp., secured by two properties in Nevada and Arizona supporting Verano's cannabis cultivation and processing operations. This marked Rainbow's first deal in Arizona and brought its footprint to 12 states with $180M in cumulative cannabis real estate deployment.
• One Liberty Properties (NYSE: OLP)flagshipStrategic or Co-development PartnerOne Liberty Properties (NYSE: OLP) is a publicly traded REIT managed by Gould Investors L.P. with a 34-year track record. OLP owns over 120 properties in 40 states across the U.S. with a 60% industrial / 30% retail / 10% flex portfolio.
• BRT Apartments Corp. (NYSE: BRT)flagshipStrategic or Co-development PartnerBRT Apartments Corp. (formerly BRT Realty Trust) is a multifamily REIT on the NYSE, managed by Gould, with a 40-year track record of investing capital for Gould and outside investors.
• Majestic Property Management Corp.coreImplementation/ SI/ Consulting PartnerMajestic Property Management Corp., founded in 1978, is a privately-held real estate organization affiliated with Gould that specializes in management, contracting, and leasing of 15 residential, 10 commercial, and 8 retail properties.
• MJ REITcoreStrategic or Co-development PartnerRainbow Realty Group acts as submanager of MJ REIT, a private REIT that employs the same cannabis real estate investment strategy as Rainbow's flagship funds but targets a different class of investors. Chris Reece (CEO) and Gopa Dobson (CRO) of MJ REIT lead investor relations.
• AC Capital Partners LLCcoreGTM or Marketing PartnerCo-founded by Chris Reece (CEO of MJ REIT), AC Capital Partners LLC is a national sponsor of alternative investments that distributes MJ REIT to broker-dealers, regional firms, and wirehouses.
• MissionInvestcoreChannel Partner/ Reseller/ DistributorMissionInvest hosts the public-facing Fund IV offering page (deals.missioninvest.co/rainbow-rg/rainbow-realty-group-iv) for accredited investor commitments.
• The Real Deal (TRD)coreGTM or Marketing PartnerSponsored content partnership with The Real Deal covering Rainbow's investment thesis and 5-year track record of uninterrupted quarterly distributions since inception.
• Arcview Group / Arcview CapitalminorGTM or Marketing PartnerArcview Capital / Arcview Events & Experiences serve as a distribution channel for MJ REIT; CRO Gopa Dobson previously served as Business Development Director at Arcview, and Chris Reece was formerly a managing director at Arcview Capital.

Scale indicators9 records

Recent moves6 records

Expansion highlights5 records

Direct peers

• Innovative Industrial Properties: NYSE-listed IIP is the dominant public cannabis-sale-leaseback REIT, financing cultivation and dispensary real estate with multi-state MSO tenants. It is the closest direct comparable to RRG's senior mortgage + sale-leaseback strategy, with a much larger public-market balance sheet and broader tenant roster.
• AFC Gamma: AFC Gamma is a publicly traded specialty finance company originating senior secured loans to state-licensed cannabis operators. Its loan-book model and target IRRs (mid-teens to low-20s) closely mirror RRG's senior mortgage product and tenant base.
• Chicago Atlantic Real Estate Finance: Chicago Atlantic is a publicly traded mortgage REIT focused on senior secured loans to state-licensed cannabis operators, similar in structure to RRG Fund III's senior-mortgage-only mandate. Comparable loan sizing, LTV discipline, and target yields.
• Pelorus Equity Group: Pelorus is a private real estate private equity firm offering sale-leaseback and bridge financing solutions to cannabis operators, operating a fund structure very similar to RRG's flagship vehicles. Direct competitor for cannabis real estate deal flow.
• Power REIT: Power REIT is a small public REIT that has financed cannabis greenhouse and industrial properties via sale-leaseback. Comparable cannabis-only asset focus and tenant profile, though smaller scale than RRG.

Broad incumbents

• One Liberty Properties (NYSE: OLP): OLP is a Gould Investors-managed public REIT owning 120+ industrial/retail properties across 40 states. Although not cannabis-focused, OLP is the parent ecosystem's diversified real estate platform from which RRG's CEO/CFO are seconded and provides institutional balance-sheet context.

Emerging players

• Embarc (formerly MJ Holdings): Embarc is a smaller cannabis real estate investment platform with cultivation and dispensary holdings and operating assets. Less of a debt-style financier and more of an owner/operator, but competes for the same pool of cannabis real estate assets and counterparty relationships.

Others

• Statehouse Holdings / financial counterparties (general MSO lender peer set): Statehouse is a cannabis operator that has historically been a borrower in the cannabis real estate debt market. Included as a representative operator-side counterparty that RRG and its direct peers finance, rather than as a competitor.

Market position

Strengths4 records

Weaknesses4 records

Competitive moat5 records

Key risks6 records

Key highlights7 records

Customer concentration

• LinkedInlinkedin.com/company/rainbowrg

Revenue estimate

Valuation estimate

Number of profiles

Profiles5 records

Subsidiaries5 records

Funding overview

Funding rounds1 record

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments1 record

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Rainbow Realty Group