Jan. 24, 2019 – Kennedy Funding, an Englewood Cliffs, New Jersey-based global direct private lender, today announced that it has closed a $1.35 million loan to Boynton Beach, Florida-based Suncoast Boynton Realty, LLC. The short-term loan was funded at an 8% interest rate. The borrower will use the loan proceeds for working capital for a 12-unit apartment building in the rapidly-growing coastal city.
“Boynton Beach is part of the thriving metropolis in Florida with a growing population, so the combination of strong housing demand and steady economic growth spelled success for this project,” said Kevin Wolfer, president and CEO, Kennedy Funding.
The borrower purchased the building for $685,000 in 2013 and spent $150,000renovating the units, including upgrades to plumbing and electrical. The building is currently fully occupied, generating gross rents of $100,800 per year.
“It can take months to secure a loan with a traditional funding institution, but with Kennedy Funding, our borrower could access the necessary capital quickly, without sitting around and waiting for a decision,” Wolfer said.
Located 1 hour north of Miami, Boynton Beach ranked #12 on Forbes’ 2018 list of America’s Fastest Growing Cities. Home to close to 74,000 people, the 16.5-square-mile city is known for its pristine beaches; for deep-sea diving, golf, and other outdoor recreation; and for its parks and conservation areas. The coastal city offers easy access to U.S. Route 1, Interstate 95, and public transportation to other major area cities.
“Boynton Beach and the West Palm Beach metro are growing, and with growth comes increased demand for housing,” Wolfer said. “Our flexible lending parameters allowed us to take this growth into consideration, instead of being chained to stiff guidelines like a traditional lender would be.”