Most of the bridge loan proceeds will go to alleviate bankruptcy claims against the five-story office building, which Nedmac operates under the terms of a 30-year leasehold with the city. About 5% of the loan will be used for repairs to the building, and for fire code compliance equipment.

Last year Nedmac and the city struck an agreement involving $2.5 million in back taxes owed by Nedmac, with the city effectively forgiving nearly half that amount. City commissioners have also proposed, on several occasions, to buy back the leasehold and raze the building and replace it with a park, at one point approving the set-aside of $3 million for that purpose.

"We make it a standard practice to look beyond the surface issues and delve into the true business value of the property," says Jeffrey Wolfer, president of Kennedy Funding. "Here, we see an office building with 80% occupancy and a decent net operating income. Loaning the funds to alleviate the immediate problems and allowing Nedmac to continue functioning as the primary leaseholder is a sound business decision."