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 

Property Geographic Area Details

Nationally where Cannabis is Medically legal

Loan Amounts

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

Interest Rates

12% to 17%

Max Loan-To-Value

75%

Max Loan-To-Cost

90%

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

    Specialty Loan Types

    • Cannabis Use Properties

    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%

    Cannabis Property Use Type

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

    Purchase Loan

    Max Loan-To-Purchase Price

    75%

    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

    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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    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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    how will the loan be paid off?

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