Kennedy Funding Closes 124-Acre Land Loan Purchase in Ontario, Canada
N.J.-based direct, private lender closes second loan in a week for 21-home subdivision
ENGLEWOOD, N.J., Jan. 7, 2025 /PRNewswire/ -- Kennedy Funding, a New Jersey-based direct, private lender, announced that it has closed a $1.883 million loan to Axe Lake Resort Inc., based in Ontario, Canada. This is the second loan that Kennedy Funding has closed within a week.
The borrower, Axe Lake Resort Inc., plans to use proceeds from the loan to acquire 124.74 acres across two undeveloped parcels of land on the province's McMurrich/Monteith Township, part of the Almaguin Highlands area in northern Ontario.
The parcels, located at 52171-0627 Woodland Drive, are part of a resort currently under construction in the Axe Lake hamlet within the township. One portion of the raw land, totaling 74.74 acres, is the third phase of the development, and includes a proposed 21-lot subdivision to build single-family homes. The remaining 50 acres will be built out in the sixth phase of the development.
"Closing challenging loans is nothing new for Kennedy Funding, but closing two loans in a week is noteworthy and a testament to our ability to find ways to say 'yes' to borrowers," said Kevin Wolfer, President and CEO, Kennedy Funding. "It's especially notable because this deal with Axe Lake Resort was for a land loan outside the U.S., which makes closings especially challenging."
The second loan closed by Kennedy Funding in the same week was a $1.445 million working capital loan for an events and hospitality space in Wallkill, New York.
"We've made a name for ourselves as lenders who look for ways to say 'yes' when other lenders say 'no,'" Wolfer said. "Closing two loans in one week demonstrates our commitment to helping borrowers get the funding they need to succeed."
Edwin Urrego, Executive Loan Officer at Kennedy Funding, highlighted Kennedy Funding's extensive experience closing loans on raw land and in international markets, two factors that automatically put these deals out of the running at nearly all U.S.-based financial institutions.
Kennedy Funding is renowned for closing loans around the globe that other U.S. lenders won't touch, thanks to their expertise in navigating international local laws and red tape. They have successfully funded projects across South America, the Caribbean, Canada, and Europe, including Jamaica, the Dominican Republic, St. Maarten, the Bahamas, Belize, St. Barts, and more.
"Raw land is considered a risky investment by almost every conventional lender in the U.S., especially raw land deals located outside the country," Urrego said, noting that the borrower is using the land as collateral. "We're not here to turn down borrowers, though. We're here to examine the merits of the deal and make informed decisions based on the borrower's plans and vision."
The quaint, rural township of McMurrich/Monteith has a population of less than 1,000 people and is located around 3.5 hours north of Toronto. The area is a popular destination for hunting, snowmobiling, hiking, and boating. Axe Lake, which is immediately adjacent to the new development, is a popular warm water fishing destination for the Ontario area.
"The new development will open this beautiful area to more visitors who want to appreciate the natural beauty that Ontario has to offer," Urrego said.
Aside from the tourism the area draws, the province of Ontario expects to benefit from job-creating new investments projected to roll out over the next few years. Notably, Honda is investing $15 billion into building electric vehicle (EV) factories, an initiative that's expected to add at least 1,000 jobs to Ontario's labor market.
"Although challenging economic conditions have affected Canada for the past few years, housing demand in Ontario is expected to grow steadily," Urrego said. "These strong demographic trends are boosting residential and vacation investment opportunities in the province, making new developments like Axe Lake Resort a hot commodity going into 2025 and beyond."
For more information about Kennedy Funding, visit www.KennedyFunding.com.
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 $4 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, Inc.
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