Austin Area Ripe for Development

Hackensack, NJ, June 16, 2008 – Consistent with its reputation for making substantial loans to borrowers throughout the United States, Hackensack-based Kennedy Funding, Inc. announces the closing of a $12.5 million loan to Potranco Limited, LP, a Texas development partnership of Alex Chambers, president and CEO of Blackhawk Development, Austin, and Chip Field.

Potranco will use the loan toward purchasing a 173.56 land tract in Bexar County, TX, in a rapidly developing area that is actually within the jurisdiction of San Antonio. The area – referred to as the “donut hole,” and previously held by the State of Texas General Land Office – had previously been sold at auction but Potranco was able to secure the option when the original purchase fell through.

“This was an excellent turn of events for Potranco in the economic sense,” says Jeffrey Wolfer, president and Co-CEO of Kennedy Funding. “This specific parcel is in the middle of an area with open zoning and just perfect for the kind of mixed-use development that the company envisions. “

Unlike traditional lenders which, in today’s lending environment, will not even consider raw land as collateral, Kennedy Funding takes a strong look at every aspect of what borrowers can offer – including parcels such as the one in Bexar County, partially developed areas, standing structures, or completed projects. Calling on its excellent field investigative team, Kennedy is able to obtain in-depth reports on a schedule that often returns relevant information within days, allowing loans to close in less than a week. In the case of Potranco, the collateral information was all positive. Because of its location, among already existing and growing residential and commercial entities, and with power supplies in place, the land’s potential is excellent. Another factor contributing to the value is the site’s location as a “hard corner,” where completion of a planned road will lead to premium pricing of whatever is built on the site. In addition to the anticipated mix of retail, office, and multifamily residential development, Potranco plans to include desirable green space within the site.

“The San Antonio area continues to draw residents and businesses to the area and Kennedy Funding was comfortable in recognizing the foresight of the Potranco partners in purchasing this land,” says Wolfer. He indicates that with more than half of planned development as retail, it furnishes a strong drawing point for the residential communities that have sprung up in the immediate environment.

Says Wolfer, “Traditional lenders might turn down this loan or at the minimum, stretch out the approval time with a time-consuming evaluation. Because of the nature of private lending, we were able to make the decision quickly and perhaps with more information. Additionally,” he says, “we do not depend on a ‘formula’ to assess collateralized properties. More importantly, we look at the whole picture instead of just a couple of ratios or statistics. We have been doing this for the two decades we’ve been in business and will continue to use good economic judgment while tailoring each loan to individual client circumstances.”

Kennedy Funding has provided loans to individuals and commercial entities from coast to coast, in the Caribbean, and Europe and, when possible, committed to loans within 24 hours, often with the loan-to-value ratio reaching 65%. With a deep capital source to fund qualified borrowers, Kennedy Funding can provide hard money, bridge loans, bank workout money, refinancing, and can deal with bankruptcies and foreclosures.