Pelorus Equity Group Opens 100M Structured Fund To Finance Cannabis Real Estate Transactions
CRE Investment Fund Closes Initial 25M Funding Round to Fuel Growth Of Cannabis Industry
Newport Beach, CA ( September 18, 2018)- Pelorus Equity Group, a Newport Beach California Real Estate investment group has announced the launch of The Pelorus Fund, a $100M structured Commercial Real Estate Fund [AS1]for the Cannabis industry. The Pelorus Fund actively targets real estate-based financing opportunities with properly licensed and established cannabis businesses that have the required state and local operating licenses and permits. This fund comes on the heels of Pelorus closing a $25M round of initial funding of which 100% of the capital has been deployed into 13 Cannabis real estate projects throughout California.
Founded by CEO Dan Leimel and President Rob Sechrist, both established Real Estate executives with a collective 50 years of experience along with a team of expert professionals, Pelorus is a first mover in the real estate segment of the cannabis industry. The Pelorus Fund lends on commercial and industrial buildings that can be repositioned in markets on the West Coast. The fund provides senior debt, senior debt with mezzanine, construction finance, and fixturization programs for tenant improvements. Pelorus Equity Group fills an essential gap in the sector as cannabis related businesses have restricted access to conventional financing sources.
Even highly experienced and properly licensed operators are often compelled to sell equity or accept cost prohibitive loans to fund new projects. The current institutional lending hurdles have created a high demand for specialty type real estate loans, and we are gratified to use our Pelorus experience to underwrite transactions that increase returns for investors and reduce finance cost for operators.
Dan Leimel, CEO of Pelorus
Adrian Sedlin, CEO of Canndescent, a Pelorus Fund customer offered, “Pelorus fills a massive void in the capital stack of most cannabis operators. Since 2015, we’ve been searching for cost-efficient real estate finance and after 50+ courtships, Pelorus was the first group we found that could marry cost-efficient capital with world-class execution.”
Pelorus Fund has secured commitments from several high net worth investors and family offices, including Guy Johnson, a prolific real estate investor and founder of Johnson Capital. The fund forecasts raising up to $100 million during this offering. In its previous $25M raise the company produced an overall return of 12.9% in its transactions and will carry this momentum over to its investment with this new fund.
To learn more about Pelorus Equity Group, please visit the company website.