By Joshua Burd
A fund operated by Procida Funding has surpassed $500 million in loan originations, following the recent closing of a $38 million loan for a higher education project.
The Englewood Cliffs-based firm on Friday announced the milestone for its 100 Mile Fund, which it established in October 2011. The investment vehicle has now provided 87 loans for a total of $532 million, most recently providing a loan to a college in Rockland County.
The fund provides bridge, construction and other value-add loans throughout New York, New Jersey, Pennsylvania and Connecticut within 100 miles of New York City. Borrowers have repaid the fund more than $362 million.
“We have a small SWAT team that does about $100,000,000 per year,” said William Procida, the CEO and president of Procida Funding. “Unfortunately, I have a major flaw and I still feel the need to personally meet every client, see every property, and continue to visit every property after we close at least once a month to make sure our investments are safe, until we are paid off.
“After seeing what happened in previous cycles, we believe in being extremely hands-on,” Procida added. “We have a policy which requires all our senior executives to visit the property and meet the borrower along with their team prior to giving approval to close.
“Then, once we are closed, our asset management team is on site with the borrower and their representative(s) a minimum of one time a month.”
The firm noted that the 100 Mile Fund is “asset class agnostic,” with investments ranging from chemical plants and gas stations to hotels, restaurants and colleges. For instance, Procida pointed to a recent $58 million loan provided to a developer seeking to rehabilitate the Metropolitan Opera House in Philadelphia.
The fund has also lent on office, multifamily and condo projects.
“Since 2017, we’ve stayed away from luxury, large-scale projects, becoming defensive by financing ‘recession-proof real estate’ such as gas stations, fuel truck repair facilities, factories,” Procida said. “(The) uglier the better.”
The 100 Mile Fund has had an average dividend of more than 12 percent annualized since inception, according to a news release. The fund is an open-ended investment vehicle for accredited investors in $200,000 investment units.