Pelorus Equity Group’s Pelorus Fund Announces Record Year Of Growth/Returns

Pelorus has currently secured more $150M for new closings.

NEWPORT BEACH, CA (February 21, 2020)-  Pelorus Equity Group, a cannabis-focused investment bank that specializes in providing value-add lending secured by real estate assets, today announced record growth for Pelorus Fund, its cannabis-focused commercial real estate fund that lends on commercial buildings and allows for cannabis-related tenants. The fund reported its most recent Q4 distribution of 20.4% and 15.5% internal rate of return (IRR) for 2019. Launched in 2018, the Pelorus Fund targets real estate-based financing opportunities with properly licensed and established cannabis businesses that have the required state and local operating licenses and permits. Pelorus has secured more $150M in the pipeline for new cannabis-related closings this year.

Coming off of a year of tremendous growth, Pelorus notably partnered with the Family Office Networks (FON) and their affiliated broker-dealer, Entoro Securities, to assist in the capital raise for the $100M Pelorus Fund. In addition to Pelorus Fund’s 2019 returns, Pelorus Equity Group has also originated more than $65M in commercial loans with cannabis tenants since 2016. 

“Pelorus Fund was able to gain significant returns and momentum despite last year’s turbulent market,” said Dan Leimel CEO of Pelorus. “We see a distinct demand for our cost-efficient real estate capital and are confident that our services can guide the industry through this period.”

Pelorus has lent to provide the build-out for the tenants of some of the most visible CPG, medical and manufacturing companies in cannabis, including Canndescent, Growpacker, Harborside, Tikun Olam and a facility with one of the largest publicly traded pharmaceutical companies in the world.


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.

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Record number of renters believe renting is more affordable than owning

A recent report from CoreLogic showed that home prices increased 4% year over year in December, and projected the U.S. price index will rise by 5.2% by December 2020.

As home prices continue to rise nationally, it’s little wonder that Freddie Mac’s latest “Profile of Today’s Renter and Owner” found that the majority of current renters believe renting is more affordable than owning.

However, the percentage of renters who hold that belief has increased dramatically in the past year.

A whopping 84% of renters said they believe renting is more affordable than owning – an all-time high for the survey. For comparison, this number is up 17 percentage points from February 2018.

The survey also found that affordability issues affect the average renter more than a homeowner. Freddie Mac said there are 42% of renters who paid more than a third of their household income on rent.

This is compared to only 24% of homeowners who spend that amount on mortgage payments.

But there is good news for renters looking to own. Given current low interest rates, 40% of renters said they plan to purchase a home.

“The housing market is strong and, based on our survey, the low mortgage rate environment may inspire both renters and owners to make an educated move this spring,” said David Brickman, Freddie Mac CEO. “While Baby Boomers tend to be satisfied with their current housing situation, younger generations are still struggling to determine whether to rent or purchase a home, largely due to lack of supply and affordability constraints.”

And that lack of supply stretches beyond single-family housing. Last year saw record-high occupancy rates in multifamily housing with a shortage of supply. Naturally, this drove rent growth. Many of the renters surveyed by Freddie Mac voiced their worry in this area.

Almost 70% of renters said they are growing more concerned about their rent going up in the next 12 months, while 68% are concerned about not being able to afford their larger expenses. Even so, according to the majority surveyed, renting is still the more affordable option.

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