Direct private lender Kennedy Funding has introduced a new lower-rate lending program focused on specific property types.
The 6&3 Lending Program is in place for multifamily properties, shopping centers, offices, and “other qualified properties,” said Kevin Wolfer, CEO of the Englewood Cliffs, NJ-based firm.
“The 6&3 stands for a six percent interest rate plus three points, specifically targeting investments in income-producing properties across the country,” said Wolfer.
“Income-producing properties are an economic staple, and it is our goal to foster investment in these types of properties.
“We have developed a formula for a certain type of product that will open up a whole new avenue of lending for the short-term borrower.”
It is still a hard-money loan program, according to Wolfer. “If there are some credit issues and the borrower may not be able to get funding elsewhere, we are in a position to provide that funding because the borrower may qualify if they have certain types of assets.”
Retail is a key sector for the program. With the growth of Internet-based retailing, many of the country’s brick-and-mortar retailers, malls and other locations that they occupy have struggled.
“The assets, however, are for the most part well-located and well-positioned for rebirth or repositioning,” said Wolfer. “With the 6&3 program, we are prepared to provide the funding necessary to accomplish the goals of those who are purchasing and/or redeveloping these sites if certain factors are in place.”
Suburban office properties provide a similar opportunity in markets where companies and their employees have gravitated to urban locations.
“The trend has left many of these properties ‘stranded,’ and because they were constructed 30-40 years ago in many cases, they are functionally obsolete,” Wolfer said. “Once again, we are prepared to take a close look at these assets as funding opportunities.ˮ
The program offers a loan-to-value ratio, up to 75 percent, said Wolfer.