Pocida Funding closes $3.5 million bridge loan for Freehold Commons

Procida Funding's 100 Mile Fund has closed a $3.5 million bridge loan to the developer of River Park Estates, a 10-unit townhome development, allowing the developer to stay in the deal and finish the project. Procida Principal Kyle Funsch negotiated a discount with the previous lender and will provide the funds to complete the remaining construction. The project will convert from condominiums to rentals. Accordign to Funsch, this project and the 100 Mile Fund, which focuses on deals in the $2 million to $10 million range within 100 miles of Procida's Englewood Cliffs, NJ headquarters, were a perfect fit. "This is exactly the type of deal that our fund was meant to finance. We have kept our eye on this project for over a year and a half," said Funsch. "With the curtailing of lending parameters and the fact that most private equity funds are targeting the $10 million and up market, we're able to meet the needs of smaller owners and developers who will ultimately be the engines that lead a local real estate and economic recovery." "Procida Funding provided much more than a bridge loan," commented Mario Echevarria, the project's developer. "They provided the local expertise, which resulted in not only the right loan, but adjustments that made the project work. We met with many different lending groups, but Procida was the only company who could get the deal done." Over the past two years, Procida Funding has negotiated over $25 million in discounts for its borrowers, a value-added service that the firm provides, according to Funsch. "We provide our borrowers with the same services offered to our advisory clients, which can be extremely beneficial," he said. "With the 100 Mile Fund, we're focusing on the area we know best, which enhances the speed, efficiency and accuracy with which we can interpret information and identify and resolve pressing issues." In nearby Union City, NJ, for example, Procida provided a $3.6 million loan last June to the developer of 28 apartment units in two buildings. Stalled at the time, the projects are both now complete with leasing underway. Procida anticipates completing $100 million in bridge and rescue loans through the 100 Mile Fund before the close of 2012.