Funds used to buy eight properties.
The funds will be used to purchase a total of eight partially leased, underperforming office buildings in New York, Pennsylvania, Connecticut, New Jersey and Rhode Island.
Fort Roc Realty, LLC, led by bankruptcy attorney, Chaim Fortgang, along with Seth Fortgang and Michael Sonnenberg, generated over one-third of the aggregate purchase price in cash, and then found that traditional lenders were not interested in supplying the difference.
Roughly 75% of the properties have major vacancies, coupled with low income levels. Consequently, raising the capital for the purchase became increasingly difficult, until Kennedy Funding entered the picture.
Under Kennedy's new loan program, Fort Roc Realty will receive the necessary funds at the 9 percent / 3 points rate reserved for customers who put significant equity of their own into the projects, as in this case, or for those who have substantial income-producing properties.
"Kennedy Funding allowed us to complete this deal with a minimum amount of negotiation and document handling and a maximum amount of time saved," remarked Seth Fortgang of Fort Roc LLC.
Jeffrey Wolfer, President of Kennedy Funding, noted that "multi-state, multi-property deals are by definition more complex than a single property transaction, and yet our experience in this area made the process relatively simple. We've done so many commercial real estate transactions--here, in Mexico, and in other parts of the world--that they've become second nature to us now.
"Plus," he continued, "we provided the funds at our new 9/3 rate, a substantial improvement over the typical hard money loan. We stay flexible and focused with clients, and when we can provide something economically advantageous to them, we go for it--even when no one else will."
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|Title Annotation:||Kennedy Funding finances Fort Roc Realty, LLC in acquiring office buildings|
|Publication:||Real Estate Weekly|
|Article Type:||Brief Article|
|Date:||Jun 22, 2005|
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