Kennedy Funding Secures $1.12 Million Loan for Baltimore Apartment Acquisition

In a notable development in the world of real estate finance, Kennedy Funding has successfully closed a loan amounting to $1.12 million aimed at facilitating the purchase of a 19-unit apartment complex in Baltimore, Maryland. This financing was specifically tailored for a foreign national investor, Cityana International Business, LLC, under the leadership of Sisay Menji Assena.

Overcoming Financial Challenges

Foreign investors often encounter significant hurdles when attempting to secure financing through conventional channels, especially within tight acquisition timelines. This was no exception for Cityana International, which faced challenges primarily due to the complexities involved for foreign nationals in the financing landscape. Kennedy Funding stepped in to bridge this gap, enabling the purchase of the property located at 1214 Walker Avenue in northeast Baltimore.

With the property comprising 19 garden-style apartments — including 12 two-bedroom/one-bath and six one-bedroom/one-bath units — it was reported to be approximately 95% occupied at the time of the deal. Located in the Idlewood area, the property benefits from strong rental demand due to its stable neighborhood, making it an attractive investment opportunity despite the hurdles faced in financing.

Structuring the Deal

To alleviate the conventional financing challenges, Kennedy Funding structured the financial agreement in such a way that the borrower contributed 45% in cash equity, while the financing firm covered the remaining 55%. This collaborative approach not only addressed the immediate financing needs of the borrower but also underscored Kennedy Funding's commitment to recognizing the potential of investment opportunities, regardless of the borrower’s profile.

Executive Loan Officer Edwin Urrego, who was instrumental in originating this deal, emphasized the firm’s focus on the asset's strength and occupancy levels instead of being solely reliant on traditional banking metrics. Reflecting on their strategic approach, Urrego noted, "This deal reflects what we do every day — finance transactions that conventional lenders are not equipped to handle. Foreign national borrowers frequently face additional scrutiny and delays, but we were able to focus on the strength of the asset and the borrower's contribution."

Quick and Efficient Financing Solutions

Kennedy Funding stands out in the finance industry as a leading private lender, well-versed in closing complex loans in expeditious timelines—sometimes within just five days. Unlike traditional lenders, which may subject deals to bureaucratic delays, Kennedy Funding directly lends its own capital, allowing for swift financial solutions tailored to the specific needs of investors.

Kennedy Funding’s President and CEO Kevin Wolfer highlighted that their lending practices are driven by the quality of the real estate rather than solely by the borrower's background. "In this case, we recognized a strong property with a high occupancy rate and substantial cash equity from the borrower. Our role is to provide capital when the opportunity arises, even if the borrower does not fit the conventional mold of a bank customer,” he stated.

About Kennedy Funding

Established as a global private lender specializing in bridge loans, Kennedy Funding has made a significant impact in commercial property financing across various regions, including the United States, the Caribbean, Europe, Canada, and Latin America. The company has successfully closed over $4 billion in loans, showcasing its expertise in providing creative financing solutions for real estate acquisitions amidst complex challenges.

To learn more about Kennedy Funding and their financing options, visit www.kennedyfunding.com.