Is Market Pressure Hindering Cannabis Real Estate

Rob Sechrist, from what we’ve observed, loves talking about how market pressure – such as it is these shaky days – is not an obstacle for what he calls “the cannabis REIT parade.”

President of Pelorus Equity Group and co-manager of the Pelorus Fund, a cannabis-use commercial real estate (CRE) mortgage and Real Estate Investment Trust (REIT), Sechrist has over two decades of experience in the real estate finance industry. And he loves to share it, which is what he’ll do that the upcoming Benzinga Cannabis Capital Conference on September 13-14 in Chicago.

Sechrist’s Career And Commitment To Investing In The Cannabis Market

Since 2010 when Pelorus began, Sechrist has raised more than $300,000,000 in secured real estate transactions. His primary role at Pelorus is developing strategic alliances with both private and institutional investors, forming equity partnerships and coordinating the company’s growth into new markets.

“We operate the largest privately-held mortgage REIT in the sector. We have over a quarter of a billion dollars in assets under management, and our investment vehicle is private, meaning that our share price never changes,” said Sechrist in an interview when discussing opportunities in financing cannabis real estate. “This means that there is no volatility on the balance of your principal investment – what you’re going to get back when you redeem out of our fund. In addition to that, our target yield for our fund is 15% net IRR. We’ve achieved that every single year we’ve been in full operations, and we just achieved 15.8% for the last year.”

Purpose Of Pelorus Equity Group’s Investments

Recently, Pelorus Equity Group closed an $11.8 million financing with Juva Life Inc. JUVAF, a life science company with pharmaceutical research and development and consumer-facing operations in cannabis production and distribution.

The primary purpose of the financing, which closed in mid-June, was to finance the exercise of tenants’ purchase option on its recently completed Stockton cultivation facility, as well as provide working capital and R&D funding.

“We’re thrilled to fund Juva to acquire its Stockton, California, facility,” stated Pelorus Equity Group CEO and manager of the Pelorus Fund Dan Leimel. “As we continue to expand our assets under management, we look forward to continuing to provide leaders in the cannabis ecosystem with flexible capital markets solutions that meet the complex deal structures of large, mid-sized, and small operators.”

Sechrist, who holds a BA from San Diego State University, as well as a California Real Estate Broker’s License, NMLS License and is a designated expert witness as an asset-based lender, is also CEO of JRS Capital USA, a real estate and technology investment firm based out of Newport Beach, California. 

Come and meet Rob Sechrist in person and lots of other cannabis executives, entrepreneurs, CEOs, investors, and cannabis advocates at the September Benzinga Cannabis Capital Conference, Sept. 13-14 in Chicago. Get your tickets HERE. Reserve your spot at the conference venue, the Palmer House Hotel HERE.

Image By Benzinga