By Joshua Burd
A joint venture has obtained a $4.85 million loan in connection with a planned Alzheimer’s disease care facility in Jacksonville, Florida, in a newly completed deal by Kennedy Funding.
The private direct lender, which is based in Englewood, said BBKR Development Partners LLC and Village Green Alzheimer’s Care Home LLC will use the proceeds to acquire 8.42 acres of raw land at the northeast corner of Kernan Boulevard and Beach Boulevard. Their plans call for a facility in a growing city whose population exceeds 900,000, where more than one in 10 residents are age 60 or older.
Kennedy Funding announced the deal this week, noting that it completed the transaction in seven days with a 6 percent interest rate.
“Turnaround in a week is unheard of with a traditional lender, and especially when it comes to raw land,” Kennedy Funding CEO and President Kevin Wolfer said. “And in light of rising interest on lending, securing a low 6 percent rate for our client was an impressive achievement.
“We knew we could turn this loan around within one week, and looking at the merits of the deal, we were confident enough in its success to offer a low interest rate.”
According to Wolfer, Kennedy Funding stepped in when Senior Loan Officer Mark Falzone heard from Mike Hernandez, a commercial broker with the Las Vegas firm Fund My Biz, that a client’s equity partner had backed out of a purchase-sell agreement 12 days before loan closing. The borrower had been in underwriting with a bank for two weeks and never expected the loan not to close, creating the need for a fast solution to avoid a major monetary loss.
“When looking at the merits of this deal, it was clear that our borrower’s vision for this project was documented and approved,” Falzone said. “And where traditional financing institutions remain reluctant to lend on raw land, we knew the deal was strong enough that a fast turnaround and low interest rate were realistic.”