HACKENSACK, NJ, November 4, 2004 — When the founders of Nebraska’s Pacesetter Corporation, a leading manufacturer of home improvement products, sold two divisions to its management team this past spring, they also looked to divest their corporate real estate. But traditional lenders couldn’t deliver the funds fast enough to the buyers. Enter Kennedy Funding, a direct private lender based in Hackensack, NJ, who provided a $3.5 million acquisition loan to enable the new owners to purchase the company’s two main commercial buildings in Omaha.

Pacesetter was founded in 1962 and grew steadily over the years, but it was today’s business reality that created a climate of change. Outsourcing of some manufacturing, expanding the product lines, and other new efficiencies were introduced by Gary Iskra, former CEO of American Home Improvement Products, who became the CEO and President of Pacesetter in 2002. After buying the manufacturing and sales services divisions, Mr. Iskra and his management team were intent on the purchase of Pacesetter’s corporate assets, a 100,000 sq. ft. manufacturing plant and a 37,000 sq. ft. office building, both to be acquired from the former parent corporation.

“Kennedy Funding demonstrated a clear understanding of our needs,” remarked Mr. Iskra. “And rather than wait for the ‘glacially slow’ traditional lenders to approve a loan, we found that Kennedy provided very quick, highly professional service. We had our financing-and our two buildings-in record time.”

The two commercial buildings are on separate but adjacent parcels and they appear to the eye as a single complex. Foot access between them is easy, and the lots are situated on a cumulative space of more than 8 acres. The manufacturing facility is in the larger building, while the smaller one was completely renovated into office space in 2000. Their overall good condition suggests that both buildings will have considerable appeal in the open market.

“We have already entered into a contract to sell the office building,” added Mr. Iskra, “and with more of the manufacturing being outsourced, we will soon sell the larger plant as well. We will find a smaller space for our corporate services, and continue to build Pacesetter past the $100-million in sales level that we have already achieved.”

Jeffrey Wolfer, president of Kennedy Funding, saw the value inherent in Pacesetter’s relocation and restructuring. “By acquiring several divisions and their physical assets, the ‘new’ Pacesetter was positioning itself for the challenges of the next decade. Kennedy Funding applied its quick valuation process and came up with the $3.5 million to make it all happen. Clearly, the management team knew what they were doing and where they were going. They just didn’t want to wait for the usual lenders to take their time structuring the loan. That’s where we came in, and we were happy to do so.”

Kennedy Funding regularly funds diverse projects in the U.S. and around the world, structuring each loan to reflect the particular needs of the borrower. Their financial depth and resources means they can offer loans ranging from $1 million to $100 million, employing a streamlined evaluation process that allows them to make loan commitments in 24 hours and closings in as little as 10 days.

While Kennedy is expert in commercial real estate loans of all types, they have expanded their scope of lending to include a wide range of enterprises, including amusement parks, high-profile golf courses, tv and radio stations, airlines, and sports complexes, among others. Their extensive knowledge base and solid reputation has seen them manage everything from the most complex of financial transactions to simple acquisitions, workouts, refinancing, bankruptcies, and foreclosures.