4A — January 22 - February 18, 2021 — M id A tlantic Real Estate Journal
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M id A tlantic R eal E state J ournal
KennedyFunding closes $1.4 Million land loan
EW YORK & PENN - SYLVANIA — G.S. Wi lcox & Co. an- $3.5M in financing acquired for PAwarehouse portfolio Fryer of G.S. Wilcox & Co. secures $44 Million for loans N
play a role in whether a lender can successfully close a loan for a borrower. “Just like the U.S. and Canada have different laws, Jamaica and Bermuda have different laws,” Wolfer said. “It’s not just about being will- ing to lend outside the U.S. – it’s about having the firsthand knowledge, experience, and capabilities to close the deal.” Wolfer added that lending on raw land is an additional obstacle to securing funding abroad, for the same reasons that land loans can be difficult to secure in the United States. “Most borrowers anywhere in the world regard raw land as a risky proposition because there are so many unknowns, and in the event of non-pay- ment and if the property itself is collateral, is it much harder for a lender to sell the prop- erty,” Wolfer said. Kennedy Funding has closed a number of loans outside U.S. borders in 2020, includ- ing a $2.633 million loan for a residential development in Brazil, $3 million for a residen- tial resort in Belize, and a $3 million loan for a residential community in the Bahamas. Even with the COVID-19 global pandemic dampening tourism and other industries that fuel economies abroad, Kennedy Funding still worked closely with each borrower to find a way to secure funding. “This was a year of economic uncertainty across the globe, but with thoughtful and care- ful planning, we are still able to provide the funding our clients need to participate in lucrative commercial real estate pursuits around the world,” Wolfer said. “No mat- ter the challenges, our experi- ence – and subsequent results – demonstrate that we have the skills necessary to close the deal.” MAREJ limited exposure in terms of decreased occupancies, asking rents and property values, as compared to other real estate classes. “Despite the complex eco- nomic variables of the pan- demic, multifamily invest- ments benefit tremendously from their fundamental func- tion as one of the most reli- able residential options,” said Uranowitz. “As such, the wide delta between multifamily investment demand and for- sale product availability is ex- pected to persist throughout 2021 and into 2022.” MAREJ
ENGLEWOOD CLIFFS, NJ — For a US-based bor- rower, securing a loan outside
20-40 DSTs) and a DST sec- ondary market. Kay Proper- ties teammembers collectively have over 115 years of real estate experience, are licensed in all 50 states, and have par- ticipated in over 15 Billion of DST 1031 investments. MAREJ This material does not constitute an offer to sell nor a solicitation of an offer to buy any security. Such offers can be made only by the confidential Private Placement Memorandum (the “Memorandum”). Please read the entire Memorandum paying special attention to the risk section prior investing. IRC Section 1031, IRC Sec- tion 1033 and IRC Section 721 are complex tax codes therefore you should consult your tax or legal professional for details regarding your situation. There are material risks associated with investing in real estate securities including illiquidity, vacancies, gen- eral market conditions and competi- tion, lack of operating history, interest rate risks, general risks of owning/ operating commercial andmultifamily properties, financing risks, potential adverse tax consequences, general economic risks, development risks and long hold periods. There is a risk of loss of the entire investment principal. Past performance is not a guarantee of future results. Potential cash flow, potential returns and potential appre- ciation are not guaranteed. Securities offered through Growth Capital Ser- vices, member FINRA, SIPC, Office of Supervisory Jurisdiction located at 582 Market Street, Suite 300, San Francisco, CA 94104. will continue the revitaliza- tion of the community,” said Miriam Zinter , mortgage officer at The Community Preservation Corporation. CPC is providing a $1.5 mil- lion construction loan, as well as a $1.5 million SONYMA-in- sured permanent loan through their partnership with the New York State Common Retire- ment Fund. The development will also utilize a PILOT agree- ment with the local Industrial Development Agency. MAREJ ond loan was for a 106,307 s/f multi-tenant flex building in Orangeburg, NY in the amount of $2.95 million. Lastly, Fryer secured $3.5 million in financ - ing for a flex/industrial ware - house portfolio in Bethlehem, PA through another correspon- dent lender. “Thank you to our valued cli- ents for their continued support. G.S. Wilcox & Co. is delighted to work with property owners, developers, and investors from across the US,” said Fryer in a prepared statement. MAREJ
The loan was arranged with a 15-year term and 30-year amortization through a cor- respondent lender of the firm. He simultaneously refinanced a 224-unit multifamily property in Harvey, LA for $14.5 million with 10-year interest only. Fryer went on to secure three additional mortgage loans across New York and Penn- sylvania. The first loan was for a retail shopping center in Amsterdam, NY equaling $4.5 million on a 10-year termwith 25-year amortization. The sec- communities we serve, while also appreciating the unique culture of each town and utilizing its existing infra- structure. The Finger Lakes Region is known for produc- ing excellent wines, and we’re excited to honor that rich history by transforming this former ‘fruit house’ into vi- able housing stock for Penn Yan. Our thanks to Cindy and Vincent Rosato for their partnership, and for their dedication to this project that in any number of different ways as long as those wishes are outlined in the investor’s will and/or succession plan. The transfer of ownership to family, as well as non-family members, is a simple admin- istration function. For more information on how DSTs can be used in estate and tax plan- ning strategies, it is always wise to consult with your tax and legal advisors. For a look at the types of DST properties investors are using for estate planning purposes please visit the Kay Properties market- place at www.kpi1031.com. Jason Salmon is senior vice president at Kay Prop- erties and Investments, LLC. About Kay Properties and www.kpi1031.com Kay Properties is a national Delaware Statutory Trust (DST) investment firm. The www.kpi1031.com platform provides access to the mar- ketplace of DSTs from over 25 different sponsor companies, custom DSTs only available to Kay clients, independent advice on DST sponsor com- panies, full due diligence and vetting on each DST (typically
the Uni ted States is no e a s y f e a t . Br i ng r aw l a n d i n t o the mix, and many b o r - rowers sim- ply assume that the odds are impossible.
nounced that principal Da- v i d Fryer had recently f i nan c ed a total of $44 million in out of state loans. Fryer se - cured an $18
Kevin Wolfer
Not so for Kennedy Fund- ing , an Englewood Cliffs, New Jersey-based direct private lender with extensive experi- ence closing loans around the world. The firm’s principals to - day announced the closing of a $1.4 million loan to P&L Hold- ing Ltd. Loan proceeds will be used to acquire 2,486.31 acres of raw land with waterfront views, located in Milk River, Clarendon Parish, Jamaica. “Over years that we have spent working closely with experts and authorities in Ja- maica, the Bahamas, Canada, and many other countries, we have honed the skills and knowledge necessary to navi- gate the real estate and money lending laws in many coun- tries outside the U.S.,” said Kevin Wolfer , CEO, Ken- nedy Funding. “Without that knowledge and experience, lenders don’t have a chance at successfully closing loans. We are proud to say that we have put our expertise to work once again, to get P&L Holding the funding they need to complete this acquisition.” According to Wolfer, inter- national loans face unique challenges and scrutiny not experienced by borrowers working domestically. Differ- ences in rules and regulations, physical distance between borrower and property, vary- ing economic conditions, and differing political climates all “Whether this is a tempo- rary or permanent phenom- enon remains to be seen. Regardless, these tenants are seeking alternative apart- ment-rental options with more living space and greater affordability, where they can safely enjoy nearby outdoor recreation venues,” he said. While the rollout of vac- cines and an accommoda- tive Fed interest-rate policy are expected to relieve any residual aftershocks from COVID-19, multifamily will continue to experience
David Fryer
million loan on behalf of the owners of a 118,000 s/f shop- ping plaza in Plainview, NY.
CPC and REI REI LLC announce $1.5M in financing for 8-unit rental building
of value, DST asset managers have the ability to create an estimation of value for the date of the demise. In comparison, carving up ownership for heirs in a wholly owned property can be difficult and even contentious. You can’t give the roof to one child or grandchild, and the walls to another and the doors to a third. It’s all or nothing. Some heirs may want to sell, while others don’t. If they all agree to sell, then they also have to agree on when to sell and at what price. In some cases, that process can drag on for years. During that time, the heirs also need to assume the man- agement responsibilities for that property or pay someone else to do it. That process gets even more complicated the more heirs who are involved. DSTs are commonly used in 1031 Exchanges as a means to defer capital gains taxes. Yet the tax advantages of the fractional ownership struc- ture also can be passed on to future generations to help build family wealth. The bot- tom line is that DSTs can be carved up and passed to heirs PENN YAN, NY — The Community Preservation Corporation (CPC) and REI REI LLC , whose principals are Cindy and Vincent Ro- sato , announced the closing of $1.5 million in construction and permanent financing to rehabilitate Liberty Street Lofts into an 8-unit property with ground floor commercial space in the village of Penn Yan. “At CPC, we invest in proj- ects that strengthen the
continued from page 2A Generational Assets: Leveraging DSTs to transfer . . .
continued from FC-A Gebroe-Hammer Associates reports . . .
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