By Joshua Burd
Kennedy Funding, an Englewood Cliffs-based direct private lender, has closed a $1.3 million bridge loan to help facilitate the sale of an industrial property in New England.
The firm said its client, Hampden Papers Inc., will use the loan proceeds as working capital for the site at 100 Water St. in Holyoke, Massachusetts. The borrower will also use the funds to complete payments due for its prior business operations, following last year’s sale of its company to a Louisville, Kentucky-based operator.
“As Hampden Papers Inc. enters the final phase of its operations, the bridge loan we provided can help them wind down and close this chapter,” said Kevin Wolfer, CEO of Kennedy Funding, adding that the lender is providing a 9 percent interest rate for the transaction.
In addition, Hamden will use the loan to cover continued costs to maintain the 5.611-acre property, which is zoned for industrial use, according to a news release. Three of the five buildings are under contract to sell to a cannabis company for $3.55 million.
“Knowing that the former Hampden Papers site was soon to be sold, we were able to quickly review and approve this loan application so the borrower could access the funding necessary to prepare for the sale,” Wolfer added. “The current value of the properties, together with the pending sale, enabled us to offer a very attractive rate, despite the lack of a structural engineer report.”
The former Hampden Papers site is located close to major thoroughfares, including interstates 391 and 91 and routes 5 and 202, the news release said. The highways allow for easy access to nearby major cities including Springfield, Massachusetts, and Hartford, Connecticut.
“The opportunity is ripe for the next business or businesses that calls 100 Water St. home,” Wolfer said. “With plenty of warehouse space, truck bays and office space for employees, each building offers plenty of room to meet the requirements of a commercial enterprise that wants to establish itself or grow its business in western Massachusetts.”
