ENGLEWOOD CLIFFS—Procida Funding’s 100 Mile Fund has closed a $3.5 million bridge loan to the developer of River Park Estates, a 10-unit townhome development in North Bergen, allowing the developer to stay in the deal and finish the project.
Procida Principal Kyle Funsch negotiated a discount with the previous lender and will provide the funds to complete the remaining construction. The project will convert from condominiums to rentals. Funsch noted that this project and the 100 Mile Fund, which focuses on deals in the $2 million to $10 million range within 100 miles of Procida’s Englewood Cliffs headquarters, were an ideal fit.
“This is exactly the type of deal that our fund was meant to finance. We have kept our eye on this project for over a year and a half,” said Funsch. “With the curtailing of lending parameters and the fact that most private equity funds are targeting the $10 million and up market, we’re able to meet the needs of smaller owners and developers who will ultimately be the engines that lead a local real estate and economic recovery.”
Over the past two years, Procida Funding has negotiated over $25 million in discounts for its borrowers, a value-added service that the firm provides.
Procida anticipates completing $100 million in bridge and rescue loans through the 100 Mile Fund before the close of 2012.