Kennedy Funding Financial closes loan secured by Texas retail property
Englewood Cliffs, NJ — Kennedy Funding Financial (KFF) has completed an $880,000 loan to Houston, Texas-based Sleep Shop & Bunk Bed World, announced Kevin Wolfer, CEO of the Englewood Cliffs based direct private lender. The source of the financing for the two-year, interest-only loan is Sleep Shop Lender LLC, and the loan will be serviced by KFF or one of its affiliates.
Collateral for the loan is a 16,835 s/f industrial/retail building including a 5,800 s/f office component, located at 5801 and 5845 Northern Freeway in Houston, utilized by Sleep Shop Super Store & Bunk Bed World as a retail furniture outlet and warehouse. The company has been in business for more than 30 years.
“This building is owner-occupied and, as such, is an unwelcome opportunity for many commercial real estate lenders,” said Wolfer. “Single-tenant buildings are often considered ‘high risk,’ because in the worst-case scenario of that tenant vacating the building, the property value would drop precipitously, potentially putting the financing into default.
“In this case, the borrower is using the proceeds of the loan as working capital for additional investment,” he said. “Kennedy Funding Financial creatively structures loans to accommodate borrowers. For this transaction, the borrower wanted to acquire additional assets, and we were able to structure a financial package to provide that opportunity.”