Arizona Company Moves Ahead on Mixed-Use Complex

July 22, 2008 – Hackensack, New Jersey-based Kennedy Funding, Inc., the direct lending company with a record of closing transactions expediently, announces an $11.5 loan to National Retail Development Partners (NRDP AZV, LLC) for site development and construction of a mixed-use office and retail complex – Ironwood Festival – in Scottsdale, Arizona.

The developer already has obtained site approval for Ironwood Festival, which will comprise six structures holding over 81,000 sq. ft. of retail and 13,285 sq. ft. of office space. NRDP needed to add funding to its own substantial investment to proceed with development. In a market where traditional lenders are turning down even the most qualified borrowers or holding up loans through long application periods, NRDP wanted to close a transaction quickly so they could honor a purchase contract on deadline and move ahead with plans to establish an aesthetic and functional center fitting the Arizona landscape. Kennedy Funding was able to close the loan in just 14 days.

“The reputation of NRDP’s principals precedes them,” says Jeffrey Wolfer, President and Co-CEO of Kennedy Funding. “They have been involved in some of the southwest’s most prestigious commercial enterprises which often are tenanted in the planning or preconstruction phases and Ironwood Festival is no exception. We are very comfortable working with such professionals.”

NRDP presented the 13.95-acre, level and undisturbed building site as collateral. Surrounding road improvements and traffic signals have been completed, facilitating access from nearby residential and commercial communities, and storm drains and sewers are in place. Retail establishments already have committed to the complex, including a national pharmacy chain, a prominent financial institution, and a supermarket. Smaller retailers will be able to lease in a 7,200 sq. ft. one-story building. Considering the desirability and continuing viability of North Scottsdale, the developers are confident that the attractive office space will entice businesses to rent. NRDP will house offices there in the same building as Tutor Time, a nationwide child care and learning center. NRDP anticipates site completion within nine months of initiation, with simultaneous build-out slated for three months after that – by October 2009.

NRDP indicates that buildings could be leased to single or multiple tenants; the site also allows for buyers to build their own buildings according to approved architectural plans.

“We were looking for a loan with a quick close and realistic expectations,” says Trent Schelkopf, president of NRDP,” and that led us to Kennedy Funding. “They moved along the time line that they promised and we will be more than willing to work with them in the future and to recommend them.”

The NRDP loan was one of three loans closed by Kennedy Funding in a two-day period. The other two were an $8.8 million loan to MerueloMaddux, one of Los Angeles’s largest industrial developers, and a $7 million loan to Flushing, NY, developer Bownetree, LLC. Two months ago, the company closed four loans totaling almost $40 million in a single day.

Borrowers who recognize the benefits of direct lending have been turning to Kennedy Funding for a more personalized approach to providing financial solutions for over 20 years and the current lending environment has increased the number of applications significantly.

“We have not changed our hands-on approach,” notes Wolfer. “We still require the same strong qualifications in borrowers but where these borrowers previously would have no difficulty looking to their own banks for money, they are blocked or delayed. At Kennedy, we often can close on a loan in days owing to our large network of evaluators in the field.” Kennedy’s borrower roster has grown to include clients throughout the Americas, Europe, the Caribbean, and beyond.

The company can fund up to 65% loan-to-value and has closed on deals for projects including retail centers, major office complexes, luxury high rise condominium complexes, residential-recreational communities, and resorts. Available financing ranges from $1 million to over $100 million, with rates as low as 10% and 3 points. The company’s expert team has dealt with bankruptcies, workouts, refinancing, and foreclosures.