Kennedy Funding Closes $1.815 Million Land Loan in Bloomfield Hills, Michigan
Borrower to use proceeds for cash-out refinancing, working capital
ENGLEWOOD CLIFFS, N.J., Jan. 21, 2021 /PRNewswire/ -- Kennedy Funding announced today that it has closed a $1.815 million loan to Bloomfield Technology Park, LLC. Proceeds from the loan will be used to pay off the existing first mortgage on 31.32 acres of raw land in Bloomfield Hills, Michigan. Remaining proceeds will be used as working capital to update site approvals.
Located just a few blocks from Select Specialty Hospital and major retail, the property is zoned as a "research park" district, ideal for business and commercial use. It is currently listed for sale at $4.9 million.
According to Kevin Wolfer, CEO of Kennedy Funding, the Englewood Cliffs, New Jersey-based direct private lender, the borrower experienced roadblocks applying for funding from traditional lenders, despite their extraordinary credit rating, and collateral that would typically be a significant deciding factor for many banks.
"Between the property type and the current economic climate, the borrower could not secure a loan, even with stellar credentials," Wolfer said. "There is no willingness for traditional lenders to lend on land, and the currently tight credit market did not make this tough prospect any easier."
Wolfer noted that Kennedy Funding's flexibility allows them to work closely with a borrower to help them secure funding, with closings often occurring within just a few days.
"Thanks to our flexible lending parameters, we were able to help this borrower achieve their vision and secure the funding necessary to position this property for a greater, renewed purpose," Wolfer said. "Our fast closing time, international reach and experience, and two-day loan commitments are the reason why borrowers come to us. They know that we can make it happen, whether the loan is for a property around the corner or on the other side of the globe."
According to Wolfer, Kennedy Funding's lengthy and proven track record closing loans for the notoriously difficult raw land property sector made review and approval for Bloomfield Technology Park, LLC an easy process.
"Traditional lenders will refuse to lend to borrowers for undeveloped land, no matter how qualified the borrower may be, and those restrictions only get tighter during uncertain economic times like the COVID-19 crisis," Wolfer said. "We have years of experience closing dozens of land loans across the U.S. and abroad, which is even rarer, so we can put that knowledge and background to work for all our applicants."
As part of the greater metro Detroit area, the city of Bloomfield Hills is expected to experience growth in key economic sectors in the coming years, including growth in employment, home values, and gross metro product. Additionally, the city has the highest income in Michigan and the third-highest income for a municipality with more than 1,000 households in the U.S., attracting talent and enterprise to the area.
"All signs point toward continued prosperity for Bloomfield Hills and the greater metro Detroit area, making the Franklin Road site an ideal one for many opportunities in growth sectors like tech and research," Wolfer said. "Any new enterprise has a great chance for success in a city like Bloomfield Hills."
About Kennedy Funding
Kennedy Funding is a global direct private lender specializing in bridge loans for commercial property and land acquisition, development, workouts, bankruptcies, and foreclosures. Kennedy Funding has closed more than $3 billion in loans to date. The firm's creative financing expertise provides funding up to 75% loan-to-value, from $1 million ($3 million international) to more than $50 million in as little as five days. The company has closed loans throughout the United States, the Caribbean, Europe, Canada, and Central and South America.
SOURCE Kennedy Funding
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