HispanicBusiness

HACKENSACK, N.J., Nov. 8 /PRNewswire/ -- 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 2004, 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.

http://www.kennedyfunding.com/ Kennedy Funding

Web site: http://www.resultsinc.com/http://www.kennedyfunding.com/