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Direct Lender for Cannabis Use Commercial Real Estate

Pelorus Equity Group, through its affiliated Pelorus Fund, specializes in cannabis-related high yield commercial real estate lending. Pelorus offers short-term, senior loans secured by stabilized and value-add cannabis-related commercial real estate. We focus on a few specific under-served areas of the cannabis space:

  • New Construction
  • Projects with build out, rehab, TI with a value-add component
  • Acquisitions and refinances that have a short fuse
  • Requests that require higher leverage (case by case)
  • Landlord refinancing for bank loans that have been called due to a cannabis tenant

What separates us from most lenders is that we consider true cannabis valuations when underwriting the transactions we take on as opposed to traditional non-cannabis values that most other lenders use as a basis. This enables our borrowers to secure significantly higher leverage on both stabilized properties and value-add projects.

Pelorus Equity Group is very selective in who we work with and the projects we take on. For perspective, a few of our current clients are Canndescent, Tikun Olam, Accucanna, Phat Panda, Growpacker Canada and La Kush.

Pelorus is an interim-purpose and solutions driven lender. If your clients are looking for a permanent financing solution, we are not the right fit.

  • Interest Rates: 12-14% for stabilized assets / 14-17% for value add (includes ground up, rehab, build-out, TI and FF&E)
  • Points: 3-5 for stabilized assets / 4-7 points for value-add
  • Terms: 12-24 months for value-add / 24-36 months for stabilized
  • Recourse: Full recourse (non-recourse available case by case)
  • LTV/LTC: LTV up to 75% / LTC up to 90% case by case
  • Broker Referral: Referral fees are capped at 2 points (average is 1.5)
  • NO Land or Outdoor Grow

Property Geographic Area Details

Nationally where Cannabis is Medically legal

Loan Amounts

$1,000,000 to $10,000,000

Interest Rates

12% to 17%

Max Loan-To-Value

75.00%

Max Loan-To-Cost

75.00%

Origination Fees

3% to 7%

Loan Terms

12 months to 36 months

Lien Position

  • 1st

Loan Purpose

  • Investment Acquisition
  • Investment Refinance
  • Improve Subject Property
  • Use Equity to Invest in Another Property
  • Invest in a Business
  • Business Working Capital
  • Value Add Project
  • Development Project

Property Occupancy

  • Vacant
  • Owner Occupied Commercial

Property Types and Loan Types

Collateral Types

  • Commercial Property

Property Types

  • Cannabis Dispensary
  • Cannabis Grow Facility
  • Industrial
  • Retail

Loan Types

  • Commercial Bridge
  • Commercial Property Value Add
  • Commercial Ground-Up Construction

Specialty Loan Types

  • Cannabis Use Properties
We do NOT lend on land or outdoor grow.

Will Consider Cannabis Use Properties

yes

Maximum LTV for Cannabis Use Properties

65.00%

Cannabis Property Use Type

  • Cultivation
  • Retail Dispensary
  • Retail Sales
  • Manufacturing
  • Processing
  • Production

Purchase Loan

Max Loan-To-Purchase Price

75.00%

Borrower Must Have Property Under Contract

yes

Will Provide Proof of Funds Letter

yes

Will Consider Lending on Purchase from Auction

no

Allowed Source of Borrower’s Equity

  • Own Cash
  • Partner
  • Equity in Subject Property
  • Equity in Another Investment Property
  • Equity in Primary Residence
  • Seller Financing
  • Crowdfunding
  • Family

Rehab Value Add Loan

Experience Required

yes

Minimum Number of Value-Add Projects Completed by Borrower

1

Will Provide Funds for Renovation Costs

yes

Max LTC for Renovation Costs

75.00%

Interest Charged for Renovation Costs

Entire Amount of Total Project Costs

Typical Number of Days for Funds Draw

3

Maximum After Repair Value

63.00%

Construction Loan

Development Experience Required

yes

Minimum Number of Ground-Up Construction Projects Completed by Borrower

1

Max LTC for Ground-Up Construction Costs

70.00%

Interest Charged for Construction Costs

Entire Amount of Total Project Costs

Will Lend on Partially Completed Construction Projects

yes

Details and Requirements

Typical Closing Time (Days)

5

Fastest Closing Time (Days)

3

Works With

  • Brokers
  • Borrowers

Payment Structure

  • Interest Only

Pre Payment Penalty

yes

3 months minimum yield

Will lend to a foreign national

yes

Will Allow Junior Position Mortgage(s) Behind Our Senior Mortgage

yes

Will Consider Collateralizing Multiple Properties in One Loan

yes

Will Consider Equity Joint Venture

no

Must speak with equity partners and get signed copy of terms and see proof of funds prior to closing.

Borrower Entity Types Considered

  • Individual(s)
  • LLC
  • Limited Partnership
  • Trust
  • Corporation
  • Non-Profit Corporation

Documentation Required

  • Credit Report
  • Tax Returns
  • Bank Statements
  • Financial Statements
  • Loan Application

Personal Guaranty (Recourse) Required

Sometimes
Non-recourse available case-by-case

Credit Check Required

yes

Minimum Credit Score Required

500

Appraisal Required for Commercial Property

Always

Broker Price Opinion (BPO) Accepted for Commercial Property

Never

Fees

Documents Fee

Fees which are paid to a third party company

  • Documents Fee
  • Legal Fee
  • Appraisal Fee
  • Inspection Fee
  • Escrow Fee
  • Title Fee
  • Background Check Fee
  • Renovation or Construction Funds Draw Fee

Legal Disclaimer

All terms are subject to change at any time for any reason. Pelorus Equity Group and the Pelorus Fund operates under the Department of Business Oversight license 60DBO 79155, California Department of Real Estate Corporate Broker’s license 01883368 and National Mortgage Licensing System and Registry license 378840.

Since 1991, our principals have funded more than 5,000 transactions that total more than $1 billion. There’s no situation we haven’t seen, and rare is the problem that we can’t find our way around.

At Pelorus, we consider ourselves specialists. We are able to navigate the sometimes choppy waters of real estate financing. We understand that the perfect situation is rare when it comes to real estate investing. When there are problems with title, property conditions, property types, traditional loans aren’t always available. That’s when you turn to Pelorus.

We have assembled a team of professionals that can not only secure your financing, we can get you closed quickly. By using our Fund or tapping into our network of partners, we can move as fast as you need to.

 

License

CFL 60DBO 79155, CA DRE Lic. 01883368, NMLS ID 378840

Year Established

2010

Associations

  • California Mortgage Association

Office Locations

124 Tustin Avenue, Suite 200, Newport Beach, California 92663

Primary Capital Source

  • Debt Fund We Manage

Alternative Capital Sources

  • Own Funds
  • Individual Investors
  • Family Offices

Loan Structure for Majority of Loans

  • Own Balance Sheet

Alternative Loan Structures

  • Own Balance Sheet
  • Multiple Investor Fractionalized Note
  • Multiple Lender Participation
  • A/B Note Participation with Private Investor

Percentage of company’s lending business focused on private mortgage

100%

Percentage of Loans Secured by Commercial Property

100%

Total Number of Loans Funded to Date

5000

Total Loan Volume Funded to Date

$1,000,000,000

Rob Sechrist

President

License Information
CA DRE Broker Lic. - 01261907

Dan Leimel

CEO

License Information
CA DRE Lic. - 01175812

Rick Scatterday

Managing Director

Loan Request

Short Description of your Loan Request or Property Address

This information is about yourself, not the subject property.

$
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(temp use, storage, billboard, parking, etc.)

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If Borrower is not seeking additional funds for the renovation, change the Loan Type to Purchase or Acquisition.

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(temp use, storage, billboard, parking, etc.)

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If Borrower is not seeking additional funds for the renovation, change the Loan Type to Purchase or Acquisition.

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how will the loan be paid off?

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