Chicago, Illinois, June 23, 2008 – A spectacular high rise residential condominium – Catalyst – will be taking shape in Chicago’s West Loop, thanks to an $8.36 million loan from Kennedy Funding, Inc. The Hackensack-based company recently closed that deal with Catalyst 123, LLC’s Gary A. Rosenberg, a well-known Chicago developer who founded Urban R2, the site purchaser.
Rosenberg contracted with renowned architect Lucien Lagrange to create a building with dramatic angles and distinctive colorful exterior. Once built, Catalyst will offer 217 residential units from the fifth to the 21st level, a three-level, enclosed parking garage with 225 spaces, and more than 15,000 sq. ft. of ground-level retail space. The 22nd floor will house a patio, party room, meeting room, exercise facility and more amenities -- including a massage therapy room, sauna, and Jacuzzi -- to appeal to the ever-growing population choosing the downtown lifestyle. The pet-friendly Catalyst also offers an indoor dog run. With its prevalent loft buildings The West Loop of Chicago is fast becoming the Midwest counterpart of New York’s Soho, with galleries, restaurants, and clubs. The area is accessible from every point in the city by car, bus, train or subway.
“Gary Rosenberg’s reputation as a seasoned real estate professional and quality developer precedes him, and the location, just minutes from the city’s central commerce area make this the kind of urban venture that warrants funding,” says Jeffrey Wolfer, president and Co-CEO of Kennedy Funding.
Urban R2’s loan collateral at the corner of Des Plaines St. and Washington Blvd. comprises 34,269 sq. ft. of surface area representing six tax parcels. Currently the site operates for public parking and is 100% level and ready for development. The area, originally zoned as a Downtown Mixed Use District, now carries Residential Business Planned Development designation, allowing the planned project to enter its first phases.
Says Jeffrey Wolfer, “Based on the pre-construction marketing, the aesthetic design by Mr. Lagrange, the floor plans and quality of materials and appliances within the units, Urban R2 already has sold a third of the condominiums, which start in the low $200s and go to over $1 million for penthouses. Walgreen’s already has committed to lease a street-level space and other retailers have spoken for almost all of the remaining retail space on a pre-lease basis. Our investigation of the collateral, project’s components and Urban R2’s documented success with other buildings such as 600 N. Fairbanks contributed greatly to our decision to fund Catalyst.
Many traditional lenders spend several months to investigate potential clients and – even when the collateral is excellent and reputations are solid – turn them down because of the uncertainty in today’s environment. With its creative approach, Kennedy often comes through in short order. A team of advisors in the field – throughout the United States, in Europe, and in the Caribbean – provides just-in-time reports, allowing Kennedy to close loans with qualified applicants in days.
“Of course we depend on the numbers, the square footage of collateral, the promise of sales,” he says, “but we take the extra step of personalizing our loans, allowing our funds to dovetail with each borrower’s vision. It’s that individualization that has earned us repeat clients and has impelled many of our current clients to refer others.” Some of Kennedy’s largest loans are based on raw land collateral, where, according to Wolfer, “our expert evaluators are able to define the potential as well as the value.”
Kennedy’s quick loan commitment can occur in as little time as two days, with closings as fast as five and a loan-to-value ratio reaching 65%. The company provides funds for commercial property acquisitions and refinancing, development and construction, bridge loans, bank workouts, hard money, and bankruptcies and foreclosures.
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