Pelorus Equity Group, a company that provides real estate loans for cannabis business, announced Wednesday the upsizing of its mortgage real estate investment trust Pelorus Fund, by increasing its offering to $1 billion from the previous $250 million.
The news comes on the heels of becoming the first company in the cannabis space to secure up to a $20 million line of credit with an FDIC-insured bank at 4.75% without non-usage fees.
"Pelorus continues to grow to meet market demand for our lending products, which now include both construction/value-add loans as well as our new stabilized lending product. With the combined offerings Pelorus can now provide lending solutions across the cannabis real estate life cycle," Dan Leimel, CEO of Pelorus Equity Group and manager of the Pelorus Fund told Benzinga. "This upsizing is in response to the significant demand we’re seeing across both products. We’re very excited to see such strong interest from investors and borrowers."
Leimel added: “Our Company launched its $100MM offering in 2018, and then in 2020, upsized it to $250MM, but with the 300% growth we’ve experienced in 2021, we continue to see an acceleration of institutional interest in our thesis and core strategy. As more owners and operators look for quicker draws to generate revenue sooner and a steady flow of deals in our pipeline and investors enter the emerging sector, we expect to have more than $250MM assets under management by the end of the year and for our growth to only continue to accelerate at a rapid pace over the next year. “
To date, Pelorus has finalized 58 commercial real-estate loan transactions and has deployed $225 million to cannabis businesses and real estate owners, comprising 1,850,000 sq. ft. in eight states across the U.S.
Photo: Courtesy of Pelorus Group
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