$5.5 Million Acquisition Loan from Kennedy Funding Puts Michigan Condos Back on Track


HACKENSACK, NJ, July 15, 2005 — The winners of a HUD foreclosure of 190 apartments in various stages of completion on 20 acres near scenic Lake Michigan had a serious financial issue on their hands: close on the appointed date, or face an extension fee penalty of roughly $9000 a day. Fortunately, they came to Kennedy Funding, a direct private lender based in Hackensack, New Jersey, and came away with a $5.5 million dollar loan to complete the transaction.

Construction on the Hideaway at the Lakeshore Apartments in Grand Haven Township, Michigan, had fallen by the wayside, after a previous developer defaulted due to design changes mandated by the local township. The contractor was left high and dry, too, as monies owed him were not forthcoming. Enter two key players: Star Heaven, LLC, determined to purchase and complete the project, and Kennedy Funding, just as determined to provide financing to complete the deal.

"My clients were in a very tight time frame," commented the attorney representing Star Heaven, "and Kennedy Funding respected that. They were professional, cooperative, and capable of some very fast decision-making."

The location for the Hideaway at the Lakeshore is picturesque, just south of the city of Grand Haven, Michigan and less than a mile from the shoreline of Lake Michigan. There are 190 one-, two-, and three-bedroom apartments in 19 ten-unit buildings, plus a 4,400 sq. ft. clubhouse. Infrastructure is in place, the buildings are in various states of completion, and some additional site work and landscaping remains to be done. The new owners expect to finish the project and sell the apartments as condominiums, and not lease them as rental units, which was the original developer's intention.

Kevin Wolfer, Co-CEO of Kennedy Funding, observed that the housing boom that has swept the nation has included areas like upper Michigan. "Multifamily housing is being built all around the area of the Hideaway apartments-less than a mile away some new construction is leasing out. Kennedy's expertise in real estate loans, plus our experience in time-is-of-the-essence situations, made this loan possible. Our appraisal noted a sizeable potential market, a well-kept middle income neighborhood, and a steady demand-all adding up to a green light."

Kennedy Funding's lending process is quick and thorough, without the usual overload of paperwork and red tape. The firm has the ability to issue loan commitments in as little as 24 hours, which often leads to closings in 2 weeks or, in some cases, as little as five days. Available financing ranges from $1 million to $100 million, and additional funds beyond that are available for the right situation.

While Kennedy specializes in commercial real estate loans, they are not limited to that arena. Their flexibility and diversity has also resulted in loans for a wide range of enterprises, including amusement parks, high-profile golf courses, TV and radio stations, airlines, and sports complexes. Businessmen and entrepreneurs across the country and around the world have called upon Kennedy to come through when other financial institutions cannot. They can generate up to 65% loan-to-value for commercial land development, acquisitions, workouts, refinancing, bankruptcies, and foreclosures.

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