Kennedy Funding slashes fees on loans up to $300 million

Real Estate Weekly, May 21, 2003

Flushed with cash and aggressively seeking new funding opportunities, Kennedy Funding, a private commercial lender based in Hackensack, N.J., has slashed its fees on loans up to $300 million by 47%.

"We've always been responsive to our clients and the brokers who work with us," says Jeffrey Wolfer, president of Kennedy Funding. "Whether it's turning around a loan commitment in just 48 hours or bending over backwards to accommodate a client's specific needs, we pride ourselves on being proactive on behalf of our clients rather than reactive such as traditional lenders."

According to Wolfer, Kennedy's proactive philosophy has led the company to lower its fees by nearly half to stimulate business borrowers lulled into indecision and inactivity by an uncertain economic climate that has held the business community at bay for a prolonged period.

"The numbers underlying the economy are good," says Kevin S. Clark, director of marketing for Kennedy Funding. "Profits are up, even marginally; productivity looks good; and costs are under control. Uncertainty about the war and terrorist activity has been a factor and no doubt has hit the airlines and tourism industry the hardest. But now we see indecision as the major obstacle to recovery and we're looking to stimulate the market by lowering our fees substantially."

Whether it's funding national or international commercial real estate developments or helping clients overcome financial and legal obstacles, Kennedy Funding excels at resolving complex situations. The lender has consistently been able to devise innovative strategies to meet their clients' financial needs. Since 1986, Kennedy has built a national reputation for successfully dealing with such situations as commercial property workouts, foreclosures, acquisitions, refinancing, and bankruptcies.

Kennedy Funding is well-known as a resourceful, key lender for commercial real estate projects of every type. In 1996, the lender branched out beyond its national service area into commercial loans in the international arena. In addition, Kennedy has expanded its lending scope to include enterprises across a wide variety of industry categories, including: commercial real estate, resorts and lodging, golf course development, sports complexes, media (TV and radio stations), retail, airlines, and a diverse range of business enterprises.

"Few lenders, if any, can match the speed with which we process loans," says Wolfer. "We can do loans of $1 million to $300 million with a commitment in two days and closing in two weeks. In addition, many loan requests are rejected by conventional lenders because they don't have the expertise to properly evaluate them. We do."

Kennedy offers distinct advantages over traditional lenders: quick response to loan requests, a staff of experienced loan officers and risk analysis experts, and an in-house due diligence team capable of handling any financial scenario. Another strength of Kennedy's is the way it works with its clients to forge close, interactive relationships.

"For many conventional lenders, the deal is over when they hand you the check," Clark says. "We view our relationships with clients differently. We stay with them through the loan process and offer professional advice before and after the deal."

Private commercial lenders, such as Kennedy, are more accessible during economic downturns when capital markets tighten and serve a critical role in maintaining the pace of commercial development worldwide. A major part of Kennedy's appeal is its recognition of the need to respond to market conditions in a timely manner.

Greater global competition has made the ability to respond quickly to market conditions vital. Traditional lenders, hampered by red tape and bureaucratic processes, often delay loan transactions, allowing crucial deadlines to be missed and viable business ventures to fold. By adapting and streamlining its internal processes, Kennedy has maximized its ability to respond quickly to its customers' needs.

"It's a mistake for companies to hold key projects in limbo waiting for the optimal conditions to move forward," says Clark.

"There is no better time than the present to act. Economic history has shown repeatedly that those individuals and companies that were "first movers" to take the initiative in market transitions gained the most success."