Cannabis multistate operator Verano Holdings Corp. closed a $12 million “cross-collateralized” senior mortgage from Rainbow Realty Group and MJ Real Estate Investment Trust in which the company put up cultivation and processing properties.
The Chicago-based MSO secured the senior mortgage with a 7.44-acre property with three industrial buildings totaling 51,981 square feet in Coolidge, Arizona, and a 41,625-square-foot industrial building on 4.86 acres in North Las Vegas, Nevada, according to a Monday news release.
Both properties are used for cultivation, manufacturing and processing to support Verano’s wholesale and retail operations in Arizona and Nevada.
“These mission-critical properties are well situated in strong real estate markets and have been updated to the highest standards,” Tyler Gilliam, vice president of New York-based Rainbow Realty Group, said in a statement.
MJ Real Estate Investment Trust is a hybrid REIT “focused on generating stability and above-market returns through monthly income, primarily by investing in state-legal cannabis markets,” according to the release.
Rainbow Realty Group specializes in sale-leaseback and mortgage financing for the cannabis industry.
The investment is Rainbow’s first deal in Arizona, the release noted, bringing the company’s footprint to 12 states and $180 million in capital deployed.
Verano has operations in 13 states, including 153 stores and 15 cultivation and processing facilities.
Shares of the company trade as VRNO on the Cboe Canada exchange and as VRNOF on the over-the-counter markets.
