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$4 Million Loan From Kennedy Funding Helps Developer Bring Gaming Enterprise to Mexico City
HACKENSACK, N.J., December 7, 2004 — The owner/developer of an Acapulco gaming establishment is benefiting from a $4,000,000 expansion loan from direct private lender Kennedy Funding, based in Hackensack, New Jersey. The funds will allow them to expand their holdings into Mexico City, at a time when literally none of the banks in Mexico will finance commercial deals.
The plans for Mexico City focus on the conversion of a warehouse into two big bingo entertainment complexes. These centers will offer bingo in several variations, plus have broadcast facilities that will show major sporting events, and allow legal sports betting as well. A restaurant and bar will complete the picture of a leisure-time destination. Developer Carlos Riva Palacio Magana has had similar success in Acapulco, where he has property that fronts an entire city block in the Colonia Icacos section of Acapulco, across the street from the International Hyatt Regency. The Acapulco property, serving as collateral for the Mexico City development, was personally designed by Magana, and houses an active Jai Alai complex for seven months of the year, as well as sports book areas, a year-round 1,000 seat bingo hall, dance club, snack bar, restaurant bar with kitchen, and administrative offices. The building condition is very good and the location is prime, on the central beach front highway in the center of the business and hotel district.
"The Acapulco business is thriving," remarked Carlos Buchanan II, CEO of Buchanan Ventures in Houston, Texas, financial advisors to the project. "But when Carlos Magana sought to expand and take full advantage of his existing permits, the money was impossible to find. We talked to everybody in Mexico without success. Traditional sources simply would not commit to this project, despite a history of proven value. Highly regulated gaming establishments are difficult to fund in the U.S. as well, but after an exhaustive search, Kennedy Funding was the answer. They did a standard commercial deal and they did it very quickly. Kennedy got it done."
Henry Haskell, founding partner in Kennedy Funding, expresses confidence in the plan. "We found the collateral property in Acapulco to be well- maintained, operational, and valuable," he remarked, "and we saw no reason why that successful profile couldn't be recreated in Mexico City. It's a satellite to the original establishment, and will be run on the same professional and profitable principles."
Jeffrey Wolfer, president of Kennedy Funding, added that a "business with a proven track record has earned the right to grow. At Kennedy Funding, we regularly support expansion of all kinds of legitimate businesses."
Where traditional lenders balked at lending for an expansion in Mexico, Kennedy Funding continued its policy of careful evaluation based on the quality of the opportunity. Kennedy does quick, precise appraisals, often making loan commitments in as little as 24 hours, and closing quickly, often in just 2 weeks.
An increasingly wide range of borrowers, from land-use developers to resort builders, entrepreneurs, and major businessmen, have turned to Kennedy Funding to arrange for financing from $1 million to $100 million.
While specializing in commercial real estate loans, Kennedy Funding has expanded its scope of lending to include a wide range of enterprises, including amusement parks, high-profile golf courses, TV and radio stations, airlines, and sports complexes, among others. Their extensive knowledge base and solid reputation has seen them manage everything from the most complex of financial transactions to simple acquisitions, workouts, refinancing, bankruptcies, and foreclosures.
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