When complete, the Shores of Paradise project will boast 452 condominium apartment units in an 18-story tower and 24 townhomes. Amenities will include a tiki bar and grill, heated pools, hot tubs, a sundeck, a fitness facility, a conference center and an on-site convenience store. It will rise next to Treasury Bay Casino.

The property was acquired by developer Jerry Wallace's Shores of Paradise LLC. The development was originally financed with a conventional construction loan; however, hurricane Katrina caused an increase in construction cost, forcing the developer to acquire additional financing.

The Kennedy Funding loan was closed in a matter of days to accommodate Wallace's need to cover one of the purchase contracts for the property that was set to expire Feb. 24. "Had they not immediately closed on the land, they would have lost a large hard deposit," says Meridian's Emanuel Westfried.

The loan will allow Wallace to acquire the property, complete the demolition of existing structural remains, and move forward with the completion of the Shores of Paradise project, according to officials with Kennedy Funding. The interest rate on the loan was not released by the parties involved. Kennedy Funding's interest rates can be as low as low as 9% plus 200 basis points.

"Even though Katrina caused a lot of destruction, it also conversely created a wealth of opportunity in Biloxi," says Kennedy Funding chief executive Kevin Wolfer. "Prices for land have not suffered, but have remained at or above pre-Katrina levels. So helping those in need to invest in the area today is simply good business--both for us and for them."

Wolfer and Jonathan Weiner negotiated the deal for Kennedy Funding. Meridian co-brokered the deal with Edward Heath and Larry Ortiz of Rich Mountain Financial Consultants Inc.