Pelorus Capital Group

Pelorus Capital Group, based in Newport Beach, California, specializes in high-yield commercial real estate lending for cannabis-related properties. They offer short-term senior loans with terms of 12 to 36 months, focusing on acquisitions, refinances, and value-add projects.

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

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 Acreage Holdings, Justice Grown, Tikun Olam, Accucanna, Canndescent, Growpacker Canada, Emerald Farms and La Kush.

It is important to note that Pelorus is an interim-purpose and solutions driven lender. If you are looking for a permanent financing solution, we are not the right fit.

Interest Rates: 14-15% for stabilized assets / 15-17% for value add (includes ground up, rehab, build-out, TI and FF&E)
Points: 4-5 for stabilized assets / 5-7 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 outdoor grow

Details and Requirements

Property Geographic Area Details

Nationally where Cannabis is Medically legal

Loan Amounts

$1,500,000 to $30,000,000

Interest Rates

12% to 17%

Origination Fees

3% to 7%

Loan Terms

12 to 36 months

Lien Position

1st

Credit Check Required

yes

Minimum Credit Score Required

500

Prepayment Penalty

yes

Prepayment Penalty Details

3 months minimum yield

Typical Closing Time (Days)

Fastest Closing Time (Days)

Payment Structure

Interest Only

Personal Guaranty (Recourse) Required

Sometimes
Non-recourse available case-by-case

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

Appraisal Required for Commercial Property

Always

Broker Price Opinion (BPO) Accepted for Commercial Property

Never

Will Consider Collateralizing Multiple Properties in One Loan

yes

Will lend to a foreign national

yes

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

yes

Will Consider Equity Joint Venture

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

Collateral Types

Commercial Property

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

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.

Pelorus Capital Group’s Lending Activity

Data Provided By Elementix

12mo Loan Volume

12mo Loan Count

Total Loan Volume

$428,038,126

Average Loan Size

$13,807,681

Loan Count by State (Past 12 Months)

CA: 17, MD: 1, NJ: 1, MI: 6, NV: 3, AZ: 1, IL: 1, MO: 1, PA: 1

Data provided by

| Disclaimer

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.

Office Locations

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

Connect with Pelorus Capital Group:

Our Team

Rob Sechrist

President

CA DRE Broker Lic. - 01261907

Dan Leimel

CEO

CA DRE Lic. - 01175812

Rick Scatterday

Managing Director

Our minimum loan amount is $1,500,000

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