Adam JacksonRainbow Realty Group completed a $12 million senior mortgage loan to Verano Holdings Corp. (OTC: VRNOF).
The loan, which was announced Monday, is secured by two cultivation and processing properties in North Las Vegas, Nevada, and Coolidge, Arizona. The cross-collateralized mortgage represents Rainbow’s first investment in Arizona and expands its footprint to 12 states, the firm said.
“We are very excited to work with an industry-leading partner like Verano on this transaction,” Tyler Gilliam, Rainbow’s vice president, said in a statement. “These mission-critical properties are well situated in strong real estate markets and have been updated to the highest standards.”
The Arizona property spans 7.44 acres with three industrial buildings totaling 51,981 square feet, while the Nevada facility includes a 41,625-square-foot industrial building on 4.86 acres. Both facilities support Verano’s wholesale and retail operations in their respective states.
Verano currently operates 153 dispensaries and 15 cultivation and processing facilities across 13 states, with more than 1.1 million square feet of cultivation capacity, according to the announcement.
The deal is the fifth transaction for Rainbow Realty Group IV, bringing the fund to 64% deployment as of March. The fund is accepting new investors through the end of April.
Earlier in the first quarter, Rainbow funded a mortgage secured by a 16,700-square-foot industrial facility in Denver.
Rainbow Realty Group and its affiliates have deployed $180 million in real estate-backed transactions across the U.S., specializing in sale-leaseback and mortgage financing solutions for the cannabis industry. Its portfolio currently includes more than 50 properties across 12 states.
The Verano mortgage was made in collaboration with Rainbow Realty Group II LLC and MJ Real Estate Investment Trust, a hybrid REIT focused on “generating stability and above-market returns” through investments in state-legal cannabis markets.
According to recent financials, Verano reported fourth-quarter revenue of $218.2 million, down 8% year-over-year, and a fourth-quarter net loss of $272.7 million. As of Dec. 31, 2024, Verano had $87.8 million in cash and $414 million in debt, with plans to reduce capital expenditures in 2025 to between $25-40 million, down from $99 million in 2024.
