Kennedy Funding Closes $1.5 Million Loan For Detroit Healthcare Facility
A portion of the building to be utilized for COVID-19 testing and treatment
ENGLEWOOD CLIFFS, N.J., March 31, 2020 /PRNewswire/ -- In the midst of an unprecedented global pandemic, and in the heart of one of the most challenging real estate markets in the United States, a New Jersey lender has successfully closed a loan for a medical facility as it expands its space to accommodate more healthcare providers.
Global direct private lender Kennedy Funding announced today that it has closed a $1.5 million loan to Conner Creek Center, LLC, of Detroit, Michigan. Funds will be used to pay off existing debt and for working capital.
"Medical providers like Conner Creek Medical Center are more important than ever, especially in light of the growing COVID-19 pandemic," said Kevin Wolfer, CEO and President, Kennedy Funding. "Residents of Detroit and the surrounding area can access much-needed care in the community."
According to Wolfer, Conner Creek Medical Center was recently selected by the state of Michigan as a site for testing and treating COVID-19 patients, further underscoring the importance of medical resources for the greater Detroit community at this time.
"Conner Creek Medical Center has 60 beds and 19 ventilators, which will be crucial for tending to patients with COVID-19 who are in need of acute care," Wolfer said.
Located near interstates 94 and 696, Conner Creek is centrally-located just 10 miles north of downtown Detroit. The facility was constructed between 1946 and 1981, originally as Holy Cross Hospital. The site later became St. John Hospital, which ceased operations in 2004. Since then, St. John leased the property to varying medical facilities until the building was acquired by new owners in 2015. New ownership is currently converting the space, now called Conner Creek, into a boutique medical facility.
Approximately 131,331 square feet of the five-story, 225,000-square-foot building is occupied by 11 tenants. Some tenants in the 16.75-acre property include the Department of Veterans Affairs (VA), which occupies 29,012 square feet, and Conner Creek Life Solutions, a residential substance abuse treatment facility which occupies 32,500 square feet. Working capital from the loan will, in part, fund the conversion of the remaining square feet into additional medical office space.
"The Conner Creek complex provides value to the greater Detroit community that cannot be understated," Wolfer said. "We are proud that we were able to secure the funding they needed to continue helping those in need of medical care, during this crisis and well into the future."
According to Wolfer, borrowers in Detroit may have difficulty securing funds from traditional lending institutions because of the city's troubled economic history, including the collapse of the auto industry, the backbone of the city, more than a decade ago, and the city's subsequent bankruptcy filing in 2013.
"Detroit has made significant strides in recent years as industry, business, and private investment return to the Motor City," Wolfer said, adding that several notable medical facility projects have broken ground in Detroit in recent years. "Signs of stabilization and revitalization are coming back. Conner Creek is an active facility with the room for continued growth."
About Kennedy Funding
Kennedy Funding is a global direct private lender specializing in bridge loans for commercial property and land acquisition, development, workouts, bankruptcies, and foreclosures. Kennedy Funding has closed more than $3 billion in loans to date. Their creative financing expertise provides funding up to 75% loan-to-value, from $1 million ($3 million international) to more than $50 million in as little as five days. The company has closed loans throughout the United States, the Caribbean, Europe, Canada, Central, and South America.
SOURCE Kennedy Funding
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