Penthouse Founder Bob Guccione Avoids Foreclosure with $14.5 Million Loan

Strategic Insights -

Bob Guccione, the 71-year-old founder of the Penthouse publishing empire, narrowly escaped foreclosure on his Eastside Manhattan mansion with a $14.5 million payment on a defaulted loan to Kennedy Funding, a direct private lender. The payment was made on February 25, just hours before a moving truck accompanied by the sheriff's department was set to begin eviction proceedings on Guccione's townhouse on East 67th Street. Guccione's attorneys negotiated a last-minute deal with Kennedy Funding's law firm, Herrick Feinstein LLP, allowing him to remain in his home, which he has resided in for approximately 30 years. The loan was secured using several of Guccione's properties, including a house in Hyde Park, NY, and two properties in Atlantic City, NJ, as collateral.

Key Takeaways:

  • Bob Guccione, the founder of Penthouse, avoided foreclosure on his Manhattan townhouse with a $14.5 million loan from Kennedy Funding.
  • The loan was secured with multiple properties as collateral, including a house in Hyde Park, NY, and two properties in Atlantic City, NJ.
  • Kennedy Funding is a direct private lender based in Hackensack, NJ, that specializes in rapid processing of commercial real estate loans.
  • Guccione's financial troubles are attributed to declining ad revenues and rising costs in the adult magazine industry.
  • The foreclosure proceedings were averted, allowing Guccione to remain in his home, which he has lived in for approximately 30 years.
  • Kennedy Funding's chairman, Joseph Wolfer, stated that the company is pleased that Guccione was able to make the payment and remain in his townhouse.

Statistics:

  • $14.5 million: The amount of the loan provided by Kennedy Funding to Guccione.
  • 30 years: The approximate number of years Guccione has been living in his Manhattan townhouse.
  • $300 million: The highest amount of loan that Kennedy Funding provides.
  • 1986: The year Kennedy Funding was established.
  • 1 million: The minimum loan amount provided by Kennedy Funding.

Sources:

  • "Penthouse Founder Averts Foreclosure with Loan" (PRNewswire, February 26)
  • http://www.kennedyfunding.com/