But even here, Wolfer sees some opportunity. An idea floating around the sector would see some former office space converted into condos, apartments or other housing. When asked if that idea held potential for him, Wolfer replied: “Yes, definitely,” in part because an office building that once would have sold for $20 million can now be bought for $4 million, and even if as much as $10 million is needed to convert to multi-family apartments or condos, it makes sense.
When it comes to the office space sector, “I don’t know if it will ever get back to the levels where it was.”
About seven years ago, his company made a $3.5 million loan on a property in Bensalem, Pennsylvania. The land approved for medical and office, was valued in excess of $7 million and was situated in a good location.
“I’ve been to the site many times and you can’t sell that property for $3.5 million today because there’s no need,” he said. Further, the local government will not permit a re-zoning for housing for the property. “We’ve tried numerous times so it does create some obstacles, but many locations do permit you,” to change the zoning.
A history of big, quick deals
Kennedy Funding has been around for 36 years and have closed more than $4 billion in loans. They specialize in providing bridge loans for workouts, working capital, acquisitions, foreclosures, refinancing on all types of properties including land.
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