Cannabis Real Estate Fund updates return target to 18.1% from previous target of 13.1%
Rainbow Cannabis Fund II launched on CrowdStreet in December 2021 to provide capital to cannabis operators through sale-leaseback acquisitions and first mortgages secured by existing real estate.
See the original offer announcement: New Cannabis Real Estate Investment Fund Targeting 13.1% Annual Return
The fund manager, Rainbow Real Estate Grouppreviously closed Rainbow Cannabis Fund I, which has just secured asset-backed financing from an FDIC member bank on attractive terms and plans to secure similar financing for Rainbow Cannabis Fund II.
Fund II’s initial target internal rate of return (IRR) was 13.1% unleveraged. However, the ability to obtain traditional forms of financing will allow the fund to achieve a higher target return and the fund manager updates the target investor IRR of the offering to 18.1% once It is fully funded and secures leverage at rates similar to Fund I.
Fund II is looking to raise up to $25,000,000 through its offering on CrowdStreet and has already closed three deals, with a fourth expected to close in early March. The next Rainbow Cannabis Fund II closing deadline is March 1, 2022.
See offer details for Rainbow Cannabis Fund II on CrowdStreet
Photo: Courtesy of CrowdStreet