Kennedy Funding Closes $1.96 Million Land Loan for Texas Rodeo and Event Center
Direct private lender closes two land loans in one week
ENGLEWOOD CLIFFS, N.J., Oct. 6, 2020 /PRNewswire/ -- It's difficult enough to obtain a land loan. Add the COVID-19 pandemic into the mix, and the prospect seems downright impossible. Not so for New Jersey-based Kennedy Funding, announcing today that it has closed a $1.96 million land loan to Plaza Tierra Caliente, Inc., based in Fort Worth, Texas.
Loan proceeds will be used to cash out on two tracts of land totaling 11.59 acres, located at 850 and 1000 Oak Grove Road in Fort Worth, that are already owned by the borrower. Funds will be used toward the acquisition of 19.8 acres located at 6250 Old Hemphill Road, which is near the Oak Grove Road properties. The borrower is under contract to sell the Oak Grove Road properties for $2 million and is under contract to acquire the Hemp Hill Road property for $1.75 million.
"The borrower came to us with an unusual set of circumstances, but we were able to find a way to secure the funding he needed," said Edwin Urrego, executive loan officer, Kennedy Funding. "As a direct private lender, we have the freedom and flexibility to examine every deal as it stands on its own merits."
According to Jerry Price of Austin, Texas-based JPF Capital Partners and the broker on the deal, Urrego and Kennedy Funding were "very quick to respond" to Plaza Tierra Caliente's needs.
"He and the Kennedy team were able to overcome a number of obstacles we encountered throughout the closing process and make the deal happen," Price said.
According to Kevin Wolfer, CEO of Kennedy Funding, the $1.96 million loan to Plaza Tierra Caliente is the second land loan closed in one week. The first closed land loan was for $3 million toward the acquisition and development of a 101.46-acre commercial and recreational site in Port Charlotte, Florida.
Wolfer called both closings a "feat," considering how challenging it can be for borrowers to secure loans on land in the first place.
"Lenders simply will not consider land loans, especially during a period as tumultuous for real estate as COVID-19," Wolfer said. "Kennedy Funding works closely with borrowers to find ways to approve their applications. We are here to help borrowers obtain the funding they need."
According to Wolfer, the buyer of the two Oak Grove Road properties plans to construct multifamily housing on the site. Currently, the property has a single-family residence and a small storage building noted to be in poor condition.
"The city of Forth Worth has wanted to construct multifamily housing in this area for quite some time, so there was significant support to see this deal advance," Wolfer said.
Wolfer noted that the Old Hemphill Road property was considered an "eyesore" by the city of Fort Worth for some time.
"The Old Hemphill Road property was once a flea market and 18-wheeler parking area, but it sat idle for a long time and did not provide any value to the city or the community," Wolfer said, adding that the city had a special-use permit zone for the property which allowed events to take place there. "The buyer has plans to transform this property into a rodeo and events center for live events."
Wolfer called the deal a "win-win" for Fort Worth.
"These new developments will bring jobs, housing, and revenue to the city and its residents," Wolfer said. "We are glad that we could help Plaza Tierra Caliente secure the funding needed to advance projects that will beautify and bring value to this area of Fort Worth."
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. Their 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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