Englewood Cliffs, NJ According to Procida Funding, its 100 Mile Fund has topped $500 million in loan originations with a recent $38 million loan closed on a college in Rockland County.
The 100 Mile Fund was established by Procida Funding in October of 2011. The Fund provides bridge, construction and other value-add loans throughout the New York, New Jersey, Pennsylvania and Connecticut markets within 100 miles of New York City. The Fund originated 87 loans totaling $532 million; $362 million of which have been re-paid.
Unlike most funds, which target one or two asset classes, the 100 Mile Fund is “asset class agnostic.” The 100 Mile Fund’s investments have ranged from chemical plants to gas stations to hotels to restaurants to colleges.
William Procida, president and CEO of Procida Funding, refers to this fund as “the little engine that could.” He said, “I’ve got friends who have done 10 to 20 times more dollar volume than us. Due to the complexity of what we do, and the way we do it, it is just not feasible to do $1 billion a year. We have a small SWAT team that does about $100 million per year. 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.”
The 100 Mile Fund has had an average dividend of over 12% annualized since inception. The fund is an open-ended investment vehicle for accredited investors in $200,000 investment units.
“After seeing what happened in previous cycles, we believe in being extremely hands on. 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,” Procida said.
One of the Fund’s most recent investments that displays the asset class diversity of the 100 Mile Fund is the recent historic rehab/construction loan on the 1904 Philadelphia Metropolitan Opera House (which Bob Dylan will be the opening performer in December 2018). The 100 Mile Fund has also lent on numerous office buildings, multifamily projects, 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…the uglier the better,” said Procida.
Procida Funding, LLC, provides bridge, mezzanine and equity capital to the real estate industry and middle market companies. Since 1995, the firm has completed over $3 billion dollars of transactions ranging from $1 million to $100 million. The firm utilizes its own capital as well as strategic capital partners. Procida Advisors provides due diligence and asset management services to financial institutions and private equity funds with a concentration on construction, bankruptcy, restructuring and marketing.
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