Pelorus Equity Group Converts Existing Debt Fund to a Mortgage REIT
NEWPORT BEACH, Calif., March 31, 2020 /PRNewswire/ -- Pelorus Equity Group, a cannabis-focused investment firm that specializes in providing value-add lending secured by real estate assets, today announced it has converted its existing debt fund to a private mortgage Real Estate Investment Trust (REIT). This decision was made by Pelorus to maximize investor tax benefits paid through dividends and provide additional growth opportunities for the company to expand its cannabis loan portfolio nationwide in medically licensed states. The Pelorus Fund's REIT status will take effect on April 1, 2020.
Due to the increasing cannabis lending demand, Pelorus has increased the Pelorus Fund offering size from $100M to $250M. Additionally, The Pelorus Fund is changing from Quarterly to Monthly distributions. The Pelorus Fund is a private mortgage REIT and the share price will not fluctuate like publicly traded REITs.
"As our portfolio diversifies and our ventures attract increasing investor interest, we want the ability to stay flexible to all opportunities while providing our current and future investors with as many tax benefits as possible with minimal disruptions," said Dan Leimel CEO of Pelorus Equity Group. "Even in periods of market volatility, industry research points to businesses finding more success in raising funds for REITS than for traditional LPs or LLCs vehicles. Adding a Mortgage REIT allows Pelorus to optimize efficiency and returns as we continue our growth in the cannabis market."
This latest announcement comes on the heels of Pelorus's record year of growth after reporting an average 15.5% internal rate of return (IRR) in 2019 and a 20.4% IRR in the most recent Q4, 2020, combined with securing $150M for new closings for this year. "We are generating near equity-like returns with a debt fund that is secured by commercial real estate that allows for cannabis use tenants," said Rob Sechrist President of Pelorus Equity Group.
ABOUT PELORUS EQUITY GROUP
Pelorus Equity Group offers a range of innovative transactional solutions addressing the diverse needs of real estate investors and portfolio managers. Our flexible acquisition and bridge lending programs are the direct result of our involvement in more than 5,000 transactions of varying size and complexity. Since 1991, our principals have participated in more than $1 billion of real estate investment transactions using both debt and equity solutions. We draw on our extensive experience to rapidly understand an opportunity, structure a logical solution and execute a timely close.
Contact: Tori Rusko, [email protected]
SOURCE Pelorus Equity Group, Inc.
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