Oyster Bay, NY Kennedy Funding continues to close loans in todays challenging real estate environment. The firm closed a $1 million loan for a 3.82-acre waterfront property located at 300 Centre Island Rd. The borrower, 300 Centre Island Rd LLC, plans to use the proceeds to pay off the existing mortgage and other debts.
Located on Long Island in Nassau County, 300 Centre Island Rd. is in a popular vacation and residential area. It is currently home to a 460 s/f cottage and a 1,077 s/f, three-car garage. The property is for sale. In addition to its advantageous geographic location, the property is large enough for a future purchaser to subdivide into several units rented to vacation-goers or year-round residents.
“We may be living through difficult economic times, but even with so many uncertainties, lucrative opportunities are still coming to the table,” said Kevin Wolfer, CEO of Kennedy Funding. “The difference is, when traditional lenders all but totally shut down deal flow, we are still able to examine each opportunity and make a determination, without restriction, on which loans are worthy of funding, even during an event as unprecedented as a pandemic.”
According to Wolfer, tight restrictions were already being imposed across all deal types before the unfolding COVID-19 crisis made those restrictions even tighter.
“Even before COVID-19 took hold in the U.S., traditional lenders were already weary about approving loan applications due to low interest rates,” Wolfer said, adding that Kennedy Funding has noticed an uptick in applications for loans related to bankruptcies, workouts, and defaults. “This resulted in belt-tightening which impacted all deal types across the board.”
Even though the lending environment may be uncertain right now, Wolfer noted that certain sectors will continue to experience growth and demand. Notably, Kennedy Funding recently closed a $1.5 million loan to a healthcare facility in Detroit, just as the novel coronavirus crisis took hold in the Motor City. The borrower’s facility was chosen to be a testing site for COVID-19.
“The world may feel frozen in place right now, but many are thinking toward the future and are continuing to pursue opportunities,” Wolfer said. “Traditional lenders are drastically tightening their already-tight rules for lending, not to mention increasing their minimum credit score requirements or refusing to lend to entire industries. We are committed to making up for this devastating gap in the real estate market.”
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