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
- Cannabis Dispensary
- Cannabis Grow Facility
Specialty Loan Types
- Cannabis Use Properties
Max Loan-to-Purchase Price75%
Borrower Must Have Property Under Contractyes
Will Provide Proof of Funds Letteryes
Will Consider Lending on Purchase from Auctionno
Allowed Source of Borrower’s Equity
- Own Cash
- Equity in Subject Property
- Equity in Another Investment Property
- Equity in Primary Residence
- Seller Financing
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
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.
- California Mortgage Association
Office Locations124 Tustin Avenue, Suite 200, Newport Beach, California 92663
CA DRE Broker Lic. - 01261907
CA DRE Lic. - 01175812
Our Minimum Loan Amount Is
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 This Lender
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.