Cannabis real estate lending, if executed properly, presents a compelling opportunity for commercial real estate investors to find higher yield. Yet cannabis real estate also presents a unique set of challenges that few lenders have the knowledge or experience to navigate On top of this, most institutional lenders are working under strict guidelines that preclude them from moving into this space.
One of these unique challenges is accurate valuation of properties with cannabis tenants. Where other lenders consistently struggle to get this right, Pelorus Equity Group has it down to a science. This allows us to get near equity-like returns on secured debt through our Pelorus Fund, a cannabis focused private mortgage REIT, providing secured debt loans to commercial real estate with cannabis operators as tenants.