For its market launch, MJ REIT, a hybrid real estate investment trust focusing on acquiring, holding, leasing, and providing financing to buildings operating in state-legal cannabis markets in the United States, has collaborated with Rainbow Realty Group and Arcview Capital. The REIT will concentrate on cannabis-related industrial and retail commercial real estate. Rainbow Realty Group will act as MJ REIT’s sub-manager, choosing and underwriting investments. Arcview Capital will act as the managing broker-dealer, distributing shares to investors and providing sales support.
“With heightened volatility in the markets and investor concerns about rising rates and inflation,” says Christopher Reece, CEO of MJ REIT, “it’s exciting to offer a strategy that gives investors an innovative option to assist them reach their long-term goals.”
What MJ REIT Does
MJ REIT will strive to address three significant investing challenges:
- Income: Aiming for 10% yearly payouts paid in monthly 1099 Income.
- Diversification: Alternative assets, such as private commercial real estate, can supplement a standard stock and bond portfolio.
- Stability: Historically, private commercial real estate has produced strong risk-adjusted returns.
“By collaborating with MJ REIT, we’ll be able to help companies in this fast-growing industry raise finance.” Rainbow Realty Group utilizes a cautious underwriting strategy and values properties using ‘non-cannabis’ valuations, unlike other cannabis REITs,” says Kyle Shenfeld, president of Rainbow Realty Group.
MJ REIT is well positioned to provide strong risk-adjusted returns for investors by combining Rainbow Realty Group’s real estate experience and Arcview Capital’s distribution knowledge, according to management.
A Way to Play on Public Markets
Rainbow Realty Group is a cannabis-focused real estate firm based in the United States. Gould Investors L.P., Rainbow’s parent firm, has been in the real estate market for more than 60 years and is a substantial shareholder of BRT Apartments Corp and One Liberty Properties, Inc.