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%
Loan Terms
12 months to 36 months
Origination Fees
3% to 7%
Lien Position
1st
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

Property Types

  • Cannabis Dispensary
  • Cannabis Grow Facility
  • Industrial
  • Retail

Loan Types

Specialty Loan Types

  • Cannabis Use Properties

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

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

Details and Requirements

Typical Closing Time (Days)

5

Fastest Closing Time (Days)

3

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

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.

Get In Touch

Pelorus Equity Group pays us to be listed, so there is no fee to connect with them directly. Share your loan request, send a simple email, call, or visit their website.

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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
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

Our Team

Rob Sechrist

President

CA DRE Broker Lic. - 01261907

Dan Leimel

CEO

CA DRE Lic. - 01175812

Rick Scatterday

Managing Director

Get In Touch

Pelorus Equity Group pays us to be listed, so there is no fee to connect. Share your loan request, send a simple email, call, or visit their website.

Stay Informed About Private Lending

Receive our monthly newsletters with valuable insights and industry updates
subscribe-illustration

Create a Loan Request

Be more efficient with your lender search. Provide the loan details once, save it, and then share it with multiple lenders.

Contact Pelorus Equity Group by whichever method you choose.

If you submit a loan request or email, it will be sent to the lender, and they will reply to you directly. A copy will be saved in our database. We will not share your information unless you ask us for recommendations.

BEFORE YOU CONTACT THIS LENDER

Our Minimum Loan Amount Is

$1,500,000

Send an email to Pelorus Equity Group