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$6.8 Million Loan From Kennedy
Funding Puts the Beat in Houston Nightclub
HACKENSACK, N.J., (PRNewswire)
August 25, 2007 — Houston's Carnaval Nightclub has huge popularity among the
Hispanic population, and attracts thousands of people on a weekly basis. The
owners planned to expand to a venue that would include a retail center and a
larger, 52,000 square foot, two-story nightclub, but when they went looking for
the cash to make the land acquisition they hit a wall: traditional lenders gave
them the runaround. It took a $6.825 million loan from Kennedy Funding, a direct
private lender based in Hackensack, NJ, to make the Carnaval plan a reality.
According to Miguel Sanchez of Gold Quest Group
in Houston, the broker for the deal, Carnaval went through several traditional
money sources and paid $50,000 in fees to various banks, but never got the
necessary loan. Kennedy Funding entered the picture and everything changed for
the better.
"It was one of my best experiences," said Mr.
Sanchez. "Because this was a raw land purchase, the banks were very reluctant.
But Kennedy Funding came through and we got the money for the deal."
The $6.8 million loan from Kennedy Funding goes
toward the purchase of 18.75 acres on the corner of Bellaire Boulevard and
Fondren Road in Houston, Texas. On that site, Carnaval Nightclub will build a
52,000 sq. ft. two-story nightclub and concert hall, replacing the smaller,
nearby facility and sized to meet the entertainment needs of a growing
clientele. Fully twice the size of the current venue, the new club will be able
to accommodate upwards of 8,000 patrons and 3,000 vehicles. Additionally,
Carnaval will build a monument surrounded by retail shops, so the space will
provide services to the community in the daytime as well.
Catering to the large Hispanic population of
the Houston area, Carnaval has been a model success story. Revenues at the
existing smaller club more than tripled from 2003 to 2007, and the target market
represents a population in the midst of a prolonged growth spurt. The Hispanic
population in the area has increased 102% since 1990, with average household
income jumping 34% from 1998 through 2003. 54% of the local Hispanic population
is comprised of adults 18-49 years of age and the market for entertainment
spending is huge.
"Niche-marketed nightclubs are a growing trend
nationwide," noted Jeffrey Wolfer, President and co-CEO of Kennedy Funding, "and
the retail shops will help spur development in the area. The proposed Carnaval
location is surrounded by counties with a concentration of people of Hispanic
heritage, often topping 30% by density. With disposable income on the rise and
flowing more freely, Carnaval has tapped a lucrative audience and has terrific
prospects. They've done their due diligence and we've done ours, and both
arrived at the same conclusion: this is a deal worth doing. We're pleased to
provide this substantial loan for a business clearly on the rise."
Kennedy Funding is an established leader in providing quick loans, in amounts
ranging from $1 million to over $100 million. The company has the ability to
issue loan commitments in as little as 24 hours, and close in as little as five
days or sooner. Rates are available as low as 9% and 2 points, and in fact, the
Carnaval loan is priced at 9% for the first year of its term.
Kennedy specializes in, but is not limited to
commercial real estate bridge loans. Their flexibility and diversity has also
resulted in loans for a wide range of enterprises, including amusement parks,
high- profile golf courses, TV and radio stations, airlines, and sports
complexes. Kennedy does business all over the United States and around the
world, including raw land deals in Mexico and development deals in as distant a
location as the Fiji Islands. They can generate up to 75% loan-to-value for
commercial land development, acquisitions, workouts, refinancing, bankruptcies,
and foreclosures. | 
